GERMAN TAXES

Wanganui Chronicle, Volume LXXXII, Issue 19437, 24 October 1925, Page 8

GERMAN TAXES

YIELD BIG SURPLUS. German ta receipts for the four months April to July inclusive are £20,000,000 more than estimated, according to the Treasury report published recently. It was estimated that the taxes should bring in £100,000,000 in this period in order to balance the year’s budget. ’ The report comes as a great surprise to all quarters, since it was through Finance Minister von Schlieben’s insistence that the present taxation system was absolutely necessary to meet expenses of the present year that the new taxation programme was passed by the Reichstag some time ago. Added to the impressions concerning the present surplus is the fact that last year’s budget showed a surplus of 2,000,000,000 gold marks, which the Finance Minister explained resulted from. Germany’s recent return to the gold basis from the inflation period which made a close estimate of budget needs difficult. The new tax programme is practically the same as last year’s, though, the industry turn-over tax is reduced 1| per cent, to 1 per cent., and luxury articles, especially tobacco and beer, is materially in creased.

-Von Schlieben based present taxation on the fact that the Dawes payment must be made by the Treasury the latter part of this year, which so far has been made from the international loan, and on alleged business depression existing _ throughout Germany, and he denied the surplus would in any way approach that of last year. The surplus from the first quarter shows business less stagnant than estimated by the Finance Minister, or represented to be in other interested quarters. The Acht-uhr Abendblatt sees in the surplus an unnecessary burden to the tune of £20,000,000 imposed on the people of the country where wages are low and food costs high.

Since the newly adopted tax program. will not reduce receipts it is believed Germany will have a surplus of at least £60,000,000 this year, even after paying sums which must be paid for reparations, according to the Dawes plan. On the other hand, the present surplus indicates Germany’s ultimate ability to bear the Dawes burden even with, business at present acknowledged to be in h state of depression, though it is not understood why Germany claims the present reparations must be paid from the international loan instead of from the Treasury account for lack of money, or why a moratorium is necessary when the budget shows a 25 per cent, surplus.