BEER-DUTY INCREASE AND CABINET CRISIS

Sun (Auckland), Volume II, Issue 562, 15 January 1929, Page 1

BEER-DUTY INCREASE AND CABINET CRISIS

GERMAN FINANCE MINISTER PROPOSES BOLD TAX SCHEME (Australian and .Y.Z. Press Association) Reed. 1.20 p.m. BERLIN', Monday. Cabinet is considering the Finance Minisetr, Dr. Hilferding's, proposals to ccver the Budget deficit of 500,000,000 marks, which is partly due to the increased reparations payment of 300,000,000 marks. Dr. Hilferding plans to increase the beer tax to an extent of 165,000,000 marks, spirits to 90,000,000 marks, capital tax 104,000,000 marks, succession duty 20,000,000 marks, Post Office contribution 26,000,000 marks. He proposes to hold back payments to States and Communes to an extent og 120,000,000. Most of the proposals will meet wit Userious opposition. The Bavarian People's Party threatens to withdraw its representatives from the Cabinet if the beer tax is increased. The States are opposing the withholding of revenues, though Mr. Parker Gilbert, AgentGeneral for Reparations, criticised the present methods of assigning the same Cabinet. The Cabinet is expected to spend a week discussing means to a comrpomise with the many-sided opposition. A criticism alreday made is that increased taxation will lead the outside world to overestimate Germany's capacity to pay reparations.