THE CHINA MAIL, APRIL 28, 1937.
Page
CHANCELLOR'S REPLY TO NEW
TAX CRITICS Budget Secrecy Need Explains Lack Of Enquiry
SYMPATHETIC CONSIDERATION OF
REPRESENTATIONS
London, To-day.
Another firm defence of his national defence contribution (the Growth of Profits Tax) was made by the Chancellor of the Exchequer, Mr. Neville Chamberlain, in the House of Commons yesterday.
Mr. Chamberlain showed some inclination to give ground on the Growth of Profits Tax issue yester- day.
MR. CHAMBERLAIN SAID HE WAS CONVINCED THAT expenditure on the expansion of in- THE OUTLINE OF THE SCHEME WAS RIGHT AND HE HAD dustry, Mr. Chamberlain said that NO INTENTION OF WITHDRAWING THE PROPOSALS:
exceptional expenditure would have THAT PART OF THE PROPOSALS NOT YET FORMULAT- an end. It was not unlimited. ED WAS SUFFICIENTLY IMPORTANT TO JUSTIFY HIM SAY- ING THAT NO ACCURATE OR SUFFICIENT JUDGMENT COULD BE FORMED UNTIL THE HOUSE AND THE COUNTRY HAD FULLER INFORMATION.
NOT SEEKING DOMINATION
TRIBUTE TO LORD GREY
TYPE ESSENTIAL TO SANE PUBLIC
LIFE
London, To-day.
A tribute to the late Lord Grey was paid by the Prime Minister in unveiling a memorial tablet outside the Ambassador's Entrance of the Foreign Office yesterday before a distinguished company of states- men, diplomats, politicians and personal friends.
* Mr. Baldwin said that Lord Grey was "a great man who was the source of inspiration and strength to all those with whom he worked, a man who will be an example to future generations of statesmen and a type in my mind essential to the preservation of
sane - and wholesome public life in a demo- cratic system:"British Wireless.
·CHANGE OF COLONY
The Colonial Office has announc- ed that a bill is to be presented to Dominica "If one is to talk seriously about Parliament to transfer
Leeward
Islands federa- this matter we are not seeking to from the dominate the world. We are seek-tion to the Windward Islands group. By the proposal bill, Dominica HE REGARDED THE PROPOSAL AS MILD AND MODER-ing only to make ourselves and our ATE AND DID NOT THINK IT WOULD IMPOSE AN INTOLER-Empire communications safe. There will be governed in a similar man- The ABLE BURDEN ON INDUSTRY.
fore I feel justified in saying that ner to the Windward Islands. we are not faced with an unlimited implications of the transfer in so He regarded the estimates of bers of Commerce and the Chamber or indefinite amount of expenditure. far as finance, legislation, and public are under the yield of the tax, ranging of Shipping, while the Federation There is a limit to it and there is services are concerned from £50,000,000 to £250,000,- of British Industries was collecting therefore a limit to the amount we consideration. 000 as fantastic, and intimated a large body of information.
have got to raise." he was prepared to reconsider He would examine these pro-
The Chancellor reviewed some of Canton Assessments the profits standard based on
posals very sympathetically and average profits for the three would do his best to act on what the errors which have been made in years from 1933 to 1935.
they told him would meet such the Press and elsewhere in apprehen-
Canton, To-day. difficulties and prevent inequali-sion of his proposal. He was now A new assessment for tax pur- ties and injustice.
obtaining the information he re-poses is being carried out in- Can- on the instructions of the as quired before he could state how ton
Mr. Tsang Yang-fu. the difficulties which had been urg-Mayor,
The Chancellor said he was fully aware there was very great anxiety in many quarters, and disturbances in securities.
He would make a soon as possible.
decision
He considered the disturbances The House agreed to the Budgeted would be met.British Wireless. Our Own Correspondent very greatly exaggerated and resolution authorising imposition based on insufficient information. of the national defence contribu- Also more importance was at- tion,
otherwise known as
CLAIM SCOUTED
the
tached to them than was deser-Growth of Profits Tax----Reuter. ved, and it was only necessary to observe what was going on in other countries where there was The Chancellor of Exchequer no national defence contribution, scouted the claim of the opposition to realise that a number of that the proposal was the main cause
events coincided to render the
of the falls of industrials and other markets of the world peculiarly ordinary shares on the London Stock sensitive at present.
Exchange and reminded the House RATES OF INTEREST
that Continental Bourses were like- Referring to the profits standard wise disturbed where no such pro- based on average profits for 1933 posal was in question. He admitted to 1935, the Chancellor said he was that uncertainty regarding the new quite prepared to reconsider it tax was an element in the London either by way of some choice given market's depressed condition. to the tax-payer as between differ- He repeated his explanation of the the ent years or by adding other years vagueness of the scheme that to those three, or possibly by a necessity of Budget secrecy had combination of both.
prevented his obtaining the advice He intimated he would provide he desired before completing the for variation of the rate of interest details. which would form the basis in re- lation to the capital standard..
TREASURY'S POSITION
He explained, that capital, for Mr. Chamberlain expressed sur- purposes of contribution, did not prise at the extent of damage it had mean share capital-but a com- been suggested would be done by puted figure representing cost of what he regarded as a mild and mo- assets and was subject to certain derate proposal and claiming that adjustments.
the Treasury was in a reasonably He was now obtaining informa- tion and was in personal contact good position to Estimate the effects of proposed taxation, recalled that with persone of great financial and
he was not expecting a higher yield industrial experience.
than between 20 and 25 million in TO EXAMINE PROPOSALS the financial year 1938-1989. Sure- He had also received communica-ly that was not an intolerable- bur- tions from a number of important den on industry. In reference to defence bodies such as Associated Cham-the anticipated effects of
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