THE BRITISH BUDGET.

Timaru Herald, Volume XIIC, Issue 13938, 25 June 1909, Page 3

THE BRITISH BUDGET.

INCREASED TAXES. EFFECT OF TAXATION. The changes introduced into the fiscal system by the Budget of 190910 are (says the " Times") so numerous that a- brief synopsis of their effect wijl be found useful. The items of taxation are mentioned in the order adopted by Mr Lloyd-George, with the estimated yield of each items appended : Duties on Private Motor Cars.—A new graduated scale of duties on private motor cars .Mid motor cycles is proposed for the United Kingdom (including Ireland, where hitherto there lias been no tax on Aiotor enm). The scale is as follows: —Under GJ lip., £2 2s; under 12 hp., £3 3s; under 1G h.p., £4 4s; under 26 h.p., £0 6s; under 33 h.p., £8 8s; under 40 h.p., £lO 10s: under GO h.p., £2l; over GO h.p., £42. Doctors' oars one-half these rates. Motor cycles, £l. No change in rates on motor cabs; existing exemptions on-trade vehicles conUnited Kingdom—£3,soo,ooo. Du(ty on Pellrol. —Threepence per gallon on petrol and "other spirits used for motor vehicles." A rebate to be granted of half the duty to motor cabs and omnibuses.—£34o,ooo. Income Tax.—Tho rates of poundage on earned *income*s up to £3OOO per annum remain as at present, viz., 9d up to £2OOO and Is over £2OOO and under £3OOO. On all other incomes under £SOO a new abatement will be allowed of £lO for every child under 36 years of ago. On incomes over £SOOO a super tax of 6d is to be levied on the amount by which it exceeds £.3000. Income tax exemptions and abatements are in future to be restricted to persons resident in the United Kingdom.k£3,soo,ooo.

The Death Duties.—The scale or estate duties is " steepened " for estates exceeding £SOOO, and the maximum oT 15 ]>er cent, will he reached at £1,000,000, instead of £3,000,000. The new scale will he: £SOOO to £IO,OOO, 4 per cent.; £IO,OOO to £20,000, 5 per cent.; £20,000 to £40,000, 0 per cent.; £40,000 to £70.000, 7 per cent.; £70,000 to £IOO,OOO, 8 per cent,: £IOO.OOO to £150,000, 9 per cent.; £150,000 to £200,000, 10 per cent.; £200,000 to £400,000, 11 per cent,; £400,000 to £600,000, 12 per cent.; £600,000 to £BOO,OOO, 13 per cent.; "£BOO,OOO to £1,000,000, 14 per cent.; iver £1,000,000, 15 per cent. The Settlement Estate duty will be increased from 1 to 2 per cent.; legacy and succession duties when; the beneficiary is a brother or sister, or descendant of n brother or sister, will he raised from 3 to 5 per cent., and in the case of all other persons the rate will be a uniform 10 per cent, instead of ranging from 5 to 10 per cent. The 1 per cent, legacy or succession duty will in future be charged on "lineals" and spouses, in cas,.s where the estate exceeds £15,000; bub in cases where the amount of the legacy, or succession, does not exceed £IOOOO, whatever the size of the estate from which it comes, exemption will be allowed; and it will be allowed if the legatee is a widow of the deceased, or a child under 21 years, . if the legacy does not exceed £2OOO. The rules" as to valuation for purposes of estate duty are modified. Agricultural property is to be taken at its "market value" instead of at 25 years' purchase; stocks ;><id shares are in all cases to be valued at their market prices. The* period during which a gift intervivos is Hanle to dutv i= extended to five years. — £2,850,000. Stamps. —The stamp: duty on conveyances on sale is raised from 10s to 20s, except in the case of stocks and other securities which change hands frequently. The duties on transfers of securities are readjusted, the rate between £5 and £IOO to be 6d (instead of Is); £IOO to £SOO, Is (as at present); £SOO to £IOOO, 2s; and a further 2s for every additional thousand. On option notes the rates are to be similar. Brokers who are not members of the Stock Exchange will in future have to issue contract notes bearing the proper stamps.—£6so,ooo. Licenses. —The scale of duties for the fill I publican's license begins at 50 per cent, of the. annual value, subject to a minimum hased on population ; £5 in rural districts and in urban areas of less than 2000 persons: £lO in urban areas between 2000 and 5000; £ls between 5000 and 10.000;" £2O between 10.000 and 50.000: £3O between 50,000 and 100.000; and £35 in London and other towns over 100.000. Beerhouses. —The rates on this class of license will be graduated similarly to full "on" licenses, the basis being one-third of the annual value of the premises. Hotels. —Hotels and restaurants whose receipts from the sale of liquor do noli exceed one-third of their total receipts, will receive concessions. Clubs. —A duty of 3d in the £ will be tevied on the amount of the

receipts of clubs from the sale of liquor. Various other license duties are evised.—£2,6oo,ooo

Land Taxation.—lt si proposed (1) to tax the owner of land tiie value of which has risen through the enterprise of the community, or neighbours, to the extent of one-fifth of the "strictiy unearned increment," starting from the value at the present moment. Tne tax will be payable when the land is sokL Corporations will pay at .->cat.?d intervals. (2) A tax of ! 2 <\ in the £ will be imposed on the capital value of land "not used to the best advantage," including mineral land. Jt is to be charged on unbuilt land '.nly. (3) A 10 per'cent, "reversion" duty is to be imposed on' benefits derived from the determination of -'easas. Special abatements will be made in certain cases. These new taxes necessitate a reconstruction of the method of valuing property.—£soo,ooo. The Spirit Duties.—To be raised 3s 9d per gallon.—£l,6oo,ooo. Tobacco.—-The duty on unmanufactured tobacco to be increased by 8d per lb, with equivalent additions to the duties on cigars, cigarettes, and manufactured tobacco.—£l,9oo,ooo.

Flora Annie Steel, a well-known authoress of novels of Indian life, writes to the London "Times":—"The following Indian prophecy, concerning the last days of Kali Yug, or present age, seems worth publishing at this juncture. The wide and yet detailed sweep of this forecast reminds me of the Budget. It is out of the Rnranas, a nortion of Hindu scripture, date (circa) 1000 B.C.—" The man who owns most gold and lavishly distributes it, will gain dominion over all. Religion will consist in wasting alms at largo, and self-willed women /will seek for power. They who rule the .State will job the people and abstract the wealth of merchants on the plea of raising taxes, and in.the world's last age the rights of man will be confused, no property be safe."