CAPITAL LEVY IN ITALY

Wanganui Chronicle, Volume 80, Issue 250, 21 October 1937, Page 7

CAPITAL LEVY IN ITALY

UNPRECEDENTED ACTION CONCESSIONS FOR FOREIGN INVESTMENTS (By Telegraph—Press Association—Copyright) ROME, Oct. 19. Cabinet has imposed an extraordinary levy of 10 per cent, on the capital stock cf. all Italian companies. A capital levy is unprecedented in Italy. Cabinet has a.so increased the duty on estate end ordinary business transactions from per cent, to 3 per cent. A measure has been parsed providing for encouraging concessions to foreign investments in Italy, before the end of 1139. SULLEN RESENTMENT EFFECT OF ANNOUNCEMENT NORMAL TAX RESOURCES AT AN END. Received Oct. 20, 9.30 p.m. LONDON, Oct. 20. The Daily Telegraph says that Italy’s capital levy does not affect London, as British commitments in Italy are negligible. Nevertheless the action has caused some pessimism as it indicates that Italy has reached the end of her normal tax resources and has decided to adopt d-sperate financial expedients. In Rome the Government's decision to impose the capital levy was announced only after the stock markets had closer. It was received with sullent resentment.

The Rome correspondent of the Times says that even the Government apologists do not pretend that the levy will be popular, but they justify it on the grounds that all forms of property benefited from the devaluation of the lire. Companies possessing capital of over 11,000,000 are permitted to pay the levy in the form of shares, while companies showing losses over the last three years pay only a quarter of the levy. The capital levy and other increases in taxation are expected to yield 1100,000,000, which is being used to met the cost of the Abyssinian war and rearmament.

Cabinet also has approved a special measure to attract foreign capital to Italy, including freedom from the Inheritance tax and assurances that investments will - not be confiscated or the free disposal of them be limited in time of war.

Cabinet has decreed the creation of three colonising bodies to settle Italian agricultural workers in Abyssinia. Special provision is being made for organising the Fascist militia in Abyssinia and other African colonies.