TAX RELIEF

Taranaki Daily News, 17 April 1935, Page 5

TAX RELIEF

BURDENS LIFTED BRITISH BUDGET PLANS / RESTORATION OF WAGES ’ SMALLER MAN ASSISTED PROGRESS TO RECOVERY By Telegraph—Press Assn. —Copyright. London, April 15. Adjustments to relieve the burden of taxation on smaller incomes, the restoration of the remainder of the economy cuts in salaries and allowances of civil servants, teachers and others and a new duty on heavy oil for road vehicles, are the principal features of the. British Budget presented to Parliament to-day by the Chancellor of the Exchequer, Mr. Neville Chamberlain. Large crowds outside the Houses of Parliament awaited the arrival of Mr. Chamberlain to present his Budget.. It included women carrying sandwich boards inscribed: “Restore cuts and provide work out of rates and not by slave camps.” Mr. Chamberlain, accompanied by Mr. Ramsay MacDonald, received an ovation on entering the House. Mr. Chamberlain spoke with admirable lucidity for 95 minutes and permitted himself early humorous references to the increased consumption of sugar, beer, wine and tea. His whole speech reflected the good humour which he felt at being able, to present a Budget which, while bearing out non-spectacular forecasts, left no section of the community worse off than before, while substantially bettering the small taxpayer. Last year showed a substantial advance towards recovery, Mr. Chamberlain said. The time lost in trade disputes was the lowest on record. The surplus of £7,562,000 was very satisfactory. The people had consumed 80,000 tons of sugar, 6,500,000 pounds of tobacco and 270,000,000 more pints of beer than the previous year. ' SPLENDI'd RECOVERY. No other country showed such financial and industrial recovery. The indus? trial output showed a 12 per cent, in- > crease. Inland revenue yielded £16,000,000 above the estimate, of which income-tax yielded £9,377,000. The exchange equalisation fund showed a profit. t Supply for 1934 would amount to £494,390,000. He was providing £10,500,000 more for defence and £14,500,000 more for civil and social services. It was estimated that inland revenue for the coming year, on the basis of the existing taxation, would yield total of £396,000,000. The prospective surplus would be £5,610,000. There would be increased duty on rice and a new duty on soya beans. • » • The income tax rate for the first £135 taxable would be Is 6d in the pound instead of the present rate of 2s 3d for the first £175. The allowance for each child after the first would be increased from £4O to £5O and the entertainment tax would be reduced oh 6d and Is seats. Married men’s personal allowance in the assessment of income tax would be increased from £l5O to £l7O. All pay cuts would be fully restored from July 1, costing £5,500,000 for' the full year. The income tax concessions would cost £4,500,000 this year and £10,000,000 for the full year. REMAINING TASK. ' In presenting the accounts and proposals Mr. Chamberlain said: “Broadly speaking we may say that we have re-, covered 80 per cent, of our prosperity. Our task is now one of getting back the remaining 20 per cent, without jeopardising the confidence we have already established. We have given peace abroad and a fair measure of unity at home. I see no reason why 1 we should not, during the current year, make a further substantial advance towards prosperity, and it is in that conviction that I have framed my Budget estimates.”

Mr. Chamberlain said the total ordinary expenditure, including £235,580,000 for the consolidated fund services, was £729,970,000, and he proceeded to indicate the means whereby he proposed to , finance this enormous outlay. He estimated the yield from income tax at £237,000,000, or £14,000,000 ’more than in 1934, surtax at £51,500,000, death duties £8,000,000, stamp duties £2,500,000, Customs and excise £29,600,000 and minor items £43,580,000. Altogether he esti- ' mated the revenue on the existing basis of taxation at £735,580,000. This would leave a prospective surplus of £5,610,000. 7 In view of the enormous fiscal advantage which accrued to Diesel-engined motor waggons he proposed to raise the duty on heavy oil in road vehicles from Id to 8d a gallon. TRANSFER TO EXCHEQUER. The road vehicle duties had produced £BOO,OOO more last year than tn the year before. He proposed to transfer £4,470,000 from the road fund to the Exchequer. This raised the surplus available to £11,025,000. He proposed to allocate £2,700,000 to relief of the entertainment tax, and further liability for taxation would be extinguished in respect of all incomes earned of unearned under £125. The prospective surplus was £500,000. Mr. C. R. Attlee (Labour), following the Budget statement, congratulated, Mr. Chamberlain for the relief to the smaller income taxpayers, the restoration of the pay cuts and the entertainment tax concessions. He hoped that the Minister of Labour would follow by abolishing the means test. • .... Sir Herbert Samuel (Liberal leader) welcomed the . improvement. in income tax allowance and the restoration of cuts to State servants. . .... Mr. J. Maxton (Labour) rejoiced that the American debt was not even mentioned. That was the most satisfactory way of dealing with external debts. Sir William Davison, as chairman of the Income Taxpayers’ Society, said he was grateful for the income tax concessions. He hoped Mr. Chamberlain would seriously consider whether expenditure on the fighting forces could not be raised by means of a loan. Mr. MacQuisten regretted that no relief was given in the terrible taxation on whisky, which had reduced the number of Scottish distilleries'from'l33 to 15. The resolutions giving effect to the Budget proposals were carried and the debate was adjourned.