BUDGET SURPLUS

Southland Times, Issue 22297, 12 April 1934, Page 7

BUDGET SURPLUS

SOUTH AFRICA EFFECT OF INCREASED GOLD PRICE DUTIES REDUCED (United Press Assn.—Telegraph Copyright.) Cape Town, April 10. The Budget shows an unparalleled recovery. After liquidating the accumulated deficit there is a surplus of £4,500,000 due to the increased price of gold and the stimulation of commerce. The Minister of Finance, Mr N. C. Havenga, renewed his pledge that only 50 per cent, would be taken from excess profits from mines for 1933. The basis of taxation would be continued with modifications to meet anomalies in connection with lower grade mines which the Minister justified on the ground that increased mining income was due to the depreciation of currency. Of the surplus £1,000,000 will be devoted to meet deficits in pensions funds,- £1,900,444 will be returned to the loan account, and the remainder applied to the redemption of the public debt. The primary income tax abatement is restored to £4OO. Postage will be reduced to-morrow to one penny and telegrams of twelve words reduced to a shilling. Stamp licence and death duties will be reduced. The duty on tea in large containers is reduced to threepence a pound and rice will be admitted free.

The duty on coffee is reduced by a halfpenny and the proviso that dumping duties must not exceed half the value of goods is deleted, thereby restoring protection to local industries from the competition of countries with depreciated currencies.