FINANGES OF FRANCE.

Taranaki Daily News, 14 May 1925, Page 7

FINANGES OF FRANCE.

COVERING BUDGET DEFICIT. NEW TAXES PROPOSED DEBTS TO THE ALLIES. By Telegraph.—Press Assn. —Copyright Received May 13, 5.5 p.m. Paris, May 13. The Minister for Finance (M. Caillaux), addressing the finance commission in the Chamber, outlined reforms to cover the Budget deficit of £38,000,000. He announced that it was proposed to increase taxation by 3,500,000,000 fiance in order that the whole of the permanent expenses of the Budget would be covered. A national bank of re-insurance would be established, to which all insurance companies would be obliged to bring at least fifty per cent, of their premiums. This would ensure to the State a proportion of the profits upon insurance, which was virtually a monopoly. New taxes would include an increase in the tobacco duties and a tax on refining petrol. The income tax does not appear capable of an increase, but it would be collected under more stringent conditions. The new taxes cannot have full effect in 1925, so the Treasury must meet the State’s demands this year. M. Caillaux emphasised that 130,000,000.000 francs of the French debt was in the form of short term engagements. There was grave danger that the receipts under the Dawes scheme, amounting to 1,240,000,000 francs, would not benefit the Treasury, being allocated to the liberated regions. M. Caillaux also proposes to earmark a proportion of the receipts from the Dawes scheme for reducing France’s debts to Britain and America.