THE BRITISH BUDGET.

Taranaki Daily News, 2 May 1919, Page 5

THE BRITISH BUDGET.

COLONIAL PREFERENCE. INCOME-TAX TO STAND. EXCESSIVE TAX ABOLISHED. London, April 30. The Budget estimated expenditure is £1,434,910,000 and the revenue £1,159,650,000. The total loans to the Allies and the Dominions are 1739 million, including Russia 508 millions, France 435 millions, Italy 412 millions, Belgium 86 millions, Serbia 18 millions. America during the year lent Britain 325 millions. Imperial preference will be based on the existing duties. There will be onesixth on consumable commodities and, apart from alcohol, one-third on manufactured goods.—Aus.-N.Z. Cable Assn. At the Central Aberdeen by-election Wood (Asquithian) 4950, defeated Davidson (Coalition Unionist) 4764, and Duncan (Labor) 3482. Received May 1, 5.5 p.m. London, April 30. In the new Budget the income-tax is unchanged. Wine is Od on the lower duty and 9d on the higher,—Aus. N.Z. Cable Assoc- " ■ Received May 1, 0.40 p.m. London, April 30. Mr- Chamberlain, in delivering the Budget, said the excess profits tax would be abolished as soon as possible. It tvould be 40 per cent, this year, yielding £50,000,000. The principle of preferential duties will bo extended to suoli articles' as tea, cocoa, sugar, tobacco, rum, motor spirit, cinema films-, clocksj Watches, and musical instruments. The preference on spirits consists of a surcharge of half-a-crown on foreign. The reduced tax on tea will operate on June 2. It is anticipated the total loss of revenue involved will ba £2,300.000. The British loans to the Allies and Dominions include £171,000,000 tp the Dominions. The death duties are to be advanced on estates between £15,000 and £20,000 from 5 to G per cent,, on estates between 1 million and 1% million' from 3D to 32 per cent., and over 2 million 40 per cent.—Aus. N.Z. Cable Assoc. THE CHANCELLOR'S DIFFICULTIES. GIGANTIC FIGURES. Received May 1, 11.15 p.m. London, April 30, Mr. Chamberlain, addressing a comparatively small house, said his difficulties were abnormal. People were less inclined now to lend savings than in war time. There',was not the same disposition to accept the burdens without grumbling. The revenue exceeded the estimate by 47 millions, while the expenditure was 393 millions below the estimate. The daily expenditure'prior to the armistice was £7,443,000, subsequently it was £0,476,000. The national debt at the end of March was 7435 millions. The estimate of revenue for 1919-20 includes 300 millions excess profits.. Britain was in a better position to face the future became its percentage of revenue to expenditure was the greatest of all the bslligerents. The estimated revenue in a future normal year on the existing basis of taxation was 653 millions and the expenditure 76(5 millions. 'He proposed to make the budget on that basis. The Government proposed to set up a select committee to consider the land value duties, which at present were unworkable. There should be a reliable valuation of land throughout the country.

He proposed to review the motor spirit duty, owing to the expense of. collection, also to repeal the excise duty on benzol and to drop the luxury tax. By increasing the spirits duty from 30s to 60s per gallon the new price per bottle would be 10s (id instead of Os. The beer duty would be increased from 59s to 70s per barrel. Tobacco would be unchanged. The estimated extra revenue from spirits would ba 21 millions and from beer 31 millions. Received May 2, 12.45 a.m. London, April 30Outlining the preference proposals, Mr. Chamberlain admitted he could not disclose a really large policy. His task was only to give effect to the declarations of the Imperial War Cabinet and the war conferences. The present range of customs duties was not wide, but could be made wide enough to develop Imperial trade. It was a small beginning, but he predicted that many members would see a really wide structure erected. It was necessary to Tiring the customs into line with the excis» where the latter existed, because preference must not be granted at the expense of the home producer. They must also remember the interests of the Allies. Therefore a general rule of preference must bo a reduction only of 7 per cent, on suear received from Empire sources, and only 2 per cent, on tobacco of the Empire's production. Sugar and tobacco could be largely developed. Preference on sugar equalled 4s a hundredweight, and on tobacco 13d per pound. He was grateful for the opportunity of introducing proposals with which his father's name was associated. Mr. Adamson, following Mr. Chamberlain, said the budget disappointed Labor, beraine it involved fresh loans, reduced the excess profits tax, and included colonial oreferenee. The workers would not continue to carry the. present burdens of taxation while profiteers were allowed to retain their unpatriotic aains. The profiteers ought to be compelled to disgorge. The Government should control cWtrieity, transport, and other public services. Mr. Donald McLean opposed Imperial preference. Mr. Chamberlain replied that there would be an opportunity later *.o voice tln<- opposition. The resolutions were adopted authorising the tea. beer and other duties. Received May 2, 1,15 a.m. London, April 30. Imperial preference will be based on the existing duties. It ;>'ill be one-sixth on consumable commodities apart from alcohol, and one-third on manufactures.