BRITISH BUDGET.

Waipawa Mail, Volume XXXVII, Issue 8178, 3 May 1919, Page 1

BRITISH BUDGET.

INCREASES IN TAXATION. PREFERENCE PROPOSALS INCLUDED. DEATH DUTIES RAISED. (Australian and N.Z. Cable Assn.) LONDON, April 30. Mr Austen Chamberlain, addressing a comparatively small House, said his difficulties were abnormal. People were less inclined now to lend their savings than in war time. There was not the same disposition to accept burdens without grumbling. The revenue exceeded the estimate by £47,000,000, while the expenditure was £393,000,000 below the estimate. The daily expenditure prior to the armistice was £7,443,000, and subsequently £6,476,000.

The National Debt at the end of March was £7,435,000,000. The estimate of the revenue for 1919-20 includes £300,000,000 excess profits. We are in a better position to face the future because our percentage of revenue to expenditure is the greatest of all the belligerents. The estimated revenue in a future normal year on the existing basis of taxation is £653,000,000 and the expenditure £766,000,000. He proposed to make the Budget on that basis. The Government proposed to select a committee to consider land value duties, which are at present 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, dropping the luxury tax and increasing the spirits duty from 30 to 50 shillings per gallon. The new price per bottle will be 10s 6d instead of 9s. The beer duty will be increased from 59s to 70s per barrel. Tobacco is unchanged. The estimated extra revenue from spirits will be £21,000,000, and from beer £31,000,000. IMPERIAL PREFERENCE.

Outlining the preference proposals, the Chancellor admitted that 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, hut 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 bring the Customs into line with the excise, 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 the general rule of preference must be reduction only, 7 pet cent, on sugar received from Empire sources only and 2 per cent, on tobacco of the Empire’s production. Sugar and tobacco could be largely developed. The preference on sugar equalled four shillings per hundredweight and on tobacco thirteen pence per pound. He was grateful for the opportunity of introducing proposals with which his father’s name had been associated.

Imperial Preference will be based on the existing duties. It will be one-sixth on consumable commodities, apart from alcohol, and one-third on manufactures.

The exeess profits tax would be abolished as soon as possible. It would be 40 per cent, this year, yielding £50,000,000. The principal preferential articles would be tea, cocoa, sugar, tobacco, rum, motor spirit, cinema films clocks, 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 from June 2nd. It is anticipated that the total loss of revenue involved will be £2,300,000. British loans to the Allies and dominions include £171,000,000 to the dominions. Death duties are advanced on estates of between £15,000 and £20,000 from 5 to 6 per cent., on estates between £1,000,000 and £1,500,000 from 30 to 32 per cent., and on estates over £2,000,000 to 40 per cent. The income tax is unchanged. Wine is sixpence on the lower duty and ninepence on the higher. LABOR DISSATISFIED, Mr Adamson, following Mr Chamberlain, said the Budget disappointed Labor because it involved fresh loans, reduced the excess profits tax and included colonial preference. Tho workers would not continue to carry the present burdens of taxation while the profiteers were allowed to retain their unpatriotic gains. The profiteers ougli to be compelled to disgorge. The Government should control electricity, transport and other public services.

Sir Donald Mae Lean opposed Imperial Preference, Mr Chamberlain, in reply, said there would be an opportunity later to voice this opposition. Resolutions were adopted authorising tea, beer, and other duties,