CAPITAL LEVY ON ITALIAN STOCK

Southland Times, Issue 23336, 21 October 1937, Page 5

CAPITAL LEVY ON ITALIAN STOCK

Desperate Financial Expedient. PAYMENT FOR WAR IN ABYSSINIA (United Press Assn.—Telegraph Copyright) (Received October 20, 7.45 p.m.) LONDON, October 20. The Italian Cabinet has imposed an extraordinary levy of 10 per cent, on the capital stock- of all Italian companies. This capital levy is unprecedented in Italy. Cabinet has also increased the duty on estate and ordinary business transactions from 24 per cent, to 3 per cent. A measure has been passed providing for the encouraging of concessions to foreign investments in Italy before the end of 1939.

The Daily Telegraph says that Italy’s capital levy has not affected London, as British commitments in Italy are negligible. Nevertheless the action caused some pessimism, as it indicates that Italy has reached the end of her normal tax resources and has decided to adopt desperate financial expedients.

In Rome the Government’s decision to impose the capital levy was announced only after the stock markets had closed. It was received with sullen resentment. The Rome correspondent of The Times says that even Government apologists do not pretend that the. levy will be popular, but they justify it on the grounds that all forms of property benefited from devaluation of the lire. Companies in possession of capital of over £1,000,000 are permitted to pay the levy in the form of shares, and companies showing losses over the last three years pay only one-quarter of the levy. The capital levy and other increases in taxation are expected to yield £100,000,000, which is being used to meet the cost of the Abyssinian war and rearmament. Cabinet also approved a special measure to attract foreign capital .to Italy, • including freedom from the inheritance tax and assurances that investments will not be confiscated or that free disposal of them will be limited in time of war. Cabinet decreed the creation of three colonizing bodies to settle Italian agricultural workers in Abyssinia. Special provision is being made for organizing a fascist militia in Abyssinia and other African colonies. BLACK ARMY FROM AFRICAN EMPIRE ITALY’S INTENSIVE WORK LONDON, October 19. Italy is .working intensively on the foundation of an African empire, says Mr Vernon Bartlett in an article in the News Chronicle.Three hundred propagandists are preparing documents in 28 African languages and are making the most intense use of radio in Abyssinia concurrently with cultural propaganda and military training. The world’s greatest Moslem university is planned, and it is hoped to have a native army of 3,000,000 within five years and 300,000 on the active list.

A company with a capital of 100,000,000 lire, 51 per cent. Italian and 49 per cent. German, will be formed to exploit Abyssinia’s iron, coal, copper and zinc. Preparations are being made to tap the timber and water power. Signor Mussolini has unexpectedly rejected plans to transfer the European section of Addis Ababa to a lower altitude after the Italians’ discovery that only Europeans with strong hearts ana lungs can live at 9000 ft. The refusal is believed to have been prompted by economic reasons.