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population which has recently begun and which is so welcome on
general grounds, and by the reduction of luxury expenditure
which Your Excellency has urged and to which the payment of
income tax will itself contribute. Accordingly, even if there
had been no intention to make any special contribution to His
Majesty's Government I should have proposed some increase of
taxation in order to provide ourselves with some margin of
reserve. That margin is secured by the proposela Your colluncy
has described, the effect of which is as follows.
On the expenditure side the ordinary budget will be
relieved of the costs of the Volunteer forces and Air Raid
Precautions, estimated in the printed volume at about 1,800,000
for 1940/4 On the revenue side the ordinary budget will
benefit by receipts from other new taxation referred to by
Your Excellency, principally the imposition of additional duties
and liquor. an petrol, XXXXXXXXXBXİXİLE . These proposals are not put forward
mainly with a view to increasing the revenue but for purposes
connected with foreign exchan e policy which I will explain more
fully in a few minutes. The additional taxes are designed
daliberately to check consumption and cannot be expected to
produce a proportional amount of r.venue.
The revenue will also benefit a little by steps which
have been taken or are in contemplation to implement certan
minor recommendations of the Taxation Committee. School foes
are being increased as from the 1st January, fees for maintenance
in hospitals are being revised, especially for Government servants;
and discussions are in train with the object of securing the
payment of royalties by certain public utility companies as
recommended by the Committee. In all the additional revenue
mainly of course from the petrol and liquor duties, should be
not less than $1,000,000 per nnum.
The revised ordinary budget should therefore show a
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