1941-04-08 — Page 3

Parliament Takes Budget Taxation Shocks Calmly

Was Prepared To Hear Much Worse

THE FIGURES THE CHANCELLOR QUOT- ED IN THE COMMONS YESTERDAY WERE ASTRONOMICAL BUT THE COMMONS HEARD HIM CALMLY BECAUSE THE COUN- TRY IS BY NOW INURED TO HIGH LEVELS OF TAXATION AND WAS FULLY PREPARED TO HEAR MUCH WORSE FROM THE CHAN- CELLOR'S LIPS.

Sir Kingsley Wood said quite frankly that the object of his taxation proposals was to make a considerable cut in purchasing power during the war, to avoid the ever-present dangers of inflation.

Taxes on Income, as announced by the Chancelot, ranged over the whole social sphere.

Basically Income Tax is raised by 1/6d to 10/- In the pound. with a lessening of abatements at the lower end of the scale and with a tightening of laxation at the other.

This tax, he said, was direct. ed primarily to taking the pro fit out of war and ensuring that in wartime, when the whole na . the tion had to bear sacrifices, ingreased production which the war required would not become

of enrichments, a means the last war.

as r

But, he added, it was one thing THUS, A SINGLE MAN to take the profit out of war: it EARNING 457- A WEEK WHO was another to tax businesses in PAID NO INCOME TAX LAST such a way as to leave them worse YEAR WILL PAY 2/- A WEEK off at the end of the war than at

IN THIS PARTICULAR INthe beginning. STANCE THE WHOLE OF THE PAYMENT WILL BE TREATED AS CREDIT TO THE INDIVI DUAL IN THE POST OFFICE SAVINGS BANK.

THEREFORE HE PROPOSED, AT THE END OF THE WAR, THAT 20 PER CENT. OF THE

NETT 100 PER CENT. OF TAX SHOULD BE RETURNED TO

PIGEON PIE IS

BACK

PIGEON PIE LUXURY DISH · OF PAST CENTURIES-IS COM- ING BACK INTO FASHION.

London pet dealers are selling hundreds of pigeons to housewives, to help out their rations.

The cockney street pigeon and wood pigeons make good dishes, boiled or baked, The pigeons are sold at 9d to Is. each,

"I could sell hundreds of pigeons in a week," Mr. G. E. Palmer, of Parkway, N W., said,

"They are very tender if cooked like rabbit

STRIKE AT PITTSBURGH CALLED OFF

A strike in the Unit- ed States Steel Cor- poration mills at Pitts- burgh, announced for midnight to-night, has been called off.

Both sides have agreed to continue negotiations on the men's demand for a wage increase.--Reu-

ter.

ADDIS ABABA SURRENDERED BY AGREEMENT

AN OFFICIAL COMMUNIQUE issued in Cairo yesterday stated “On the evening of April 5 our lead- ing troops entered Addis Ababa. The Viceroy and Government had left the city.

At the other end of the scale INDUSTRY TO ASSIST IN RE-1,

Income Tax and Surtax will ab- sorb 19/6 in the pound, leaving to the individual exactly 6d in the pound,

Firm Resolve

"The whole world," said Sir Kingsley amid loud cheers, "wil see in this still further and sub- stantial evidence of our firm re-

CONSTRUCTION.

The Chancellor made

no pro-

posals for increasing the taxes on

| tobacco, wines and spirits and sim-

jlar comunodities.

Lease And Lend

Cush expenditure is budgeted as £4,207,000,000, without includ-

expenditure "far

-

U.S. WATCH ON FAR

EAST

Leading New York

| newspapers yester

day gave prominence to a from Chung- despatch king reporting the rout of the Japanese troops in the Kiangsi battle. Most papers play up the 20,000 casualties suffered by the Japanese.

Despite the outbreak of the Ger- man-Yugoslavin-Greek War, the Press continues to follow For Eastern developments with close interest.

The Washington Star” hails the Manila Conference, expressing gratification at the United States taking the lead iri £1 common diplomatic and strategic front in the Far East defensively directed against further Japanese aggres→ sion.

Latest Information reaching Washington states that at the forthcoming meeting among the Anglo-American-Dutch defence chiefs in Manila discussions are expected to centre on the ques- tion of basing naval and air patrols on Manila, Batavia and Singapore.

'As a result of messages dropped by us on April an envoy from the Viceroy of Italian East Africa flew to our lines on April 3, when conditions were presented to him to ensure the safety of the civil po pulation of Addis Ababa in the event of fighting including cooperation during round the city."

Armoured cars led the British column into the Abyssinian capi- tal on Saturday. They found the city in the charge of Italian po-

fies

solve to leave nothing undone to ing United States Lease and Lend achieve victory whatever the cost." supplies, which would raise Gov-lice, who formally surrendered it.

Under the new taxation, heernment's total explained, that in order to enjoy beyond £5,000,000,000." a tax-free income of £5,000 a year, it would be necessary for an individual to have a gross Income of £60,000 "and very few to-day have an income of that sum," he added, amid ironi. gal cheers,

Excluding the increased bal- ances of the British Dominions, India and other overseas sterling countries,

of

domestic expenditure becomes £3,700,000,000, which will be covered by a tax revenue of £ 1,636,000,000 on the existing 000 from the present basis of pri- vate savings, leaving a gip about £500,000,000, for which Sir Kingsley proposes to fill in rough- ly equal halves from new taxa tion, to yield £150 millions this year, and £250 millions in a full year, and a from new private sav-

Explaining the reduction in basis of taxation and £1,000,000,- abatements on Smaller incomes, more fully, he intimated that the! extra tax which the small wage earner would pay would be offset after the war by a credit in the Post Office Savings Bank

AS EXAMPLE HE CITED THE CASE OF A MARRIED MAN

!

WITH TWO CHILDREN, WITHings, estinated to produce between AN EARNED INCOME OF £350 £200 and £300 millions.

A YEAR, WHO LAST YEAR WOULD HAVE PAID £5:8:4.

Under the new budget the same man with pay £24:7:6 but of the increase of approximately 19 there will be paid to him after

war the sum of

A tho

£ 17:6:8.

Up And Up

As one moves up the income tax scale so the proportions to be dealt with in the form of credit in the Savings Bank decline,

£81

The Unjon Jack now over the Palace formerly occu pled by Emperor Halie Selassie, and the city seems to be very rapidly resuming normal fife. It is now revealed that General Santini, one of the leading Italian commanders, narrowly escaped for the second time being cap- tured.

MEANWHILE THE DUKE OF AOSTA, THE ITALIAN VICEROY, MILITARY CHIEFS AND FORCES ACCOMPANYING HIM, ARE REPORTED

TO BE MAKING THEIR WAY NORTH- WARDS. REUTER.

PUNJAB FIGHTER

SQUADRON

With the approval of the Minis- try of Aircraft Production it has special been decided to form a

This domestic expenditure of £3,700,000,000 compares with £2,086,000,000 during the first year of the war and an annual rate of £3,190,000,000 in the first half of the second year, thus in squadron of fighter planes to be dicating continued expansion of known as the Punjab Fighter the war effort,

Squadron. It will be a perman. Exclusion of the Lease and Lendent part of the R.A.F. and will supplies follows traditional pro- consist of 20 fighter 'planes to It is being formed cedure, since the British Budget is begin with.

from the Punjab's contributions, always framed on a strictly cash

-Reuter.

basis.

BRAZIL ACCEPTS

INVITATION

Rio

It is also intimated that the co- ordination of interests may ex- ceed the present defence needs, re- construction after the present war.

Central News,

BRITISH BEER

IS

BEST

McEwan's

Red Label

SPARKLING BEER

BREWED & BOTTLED

quoted B

Thus a married man with two

Keynes Modified: children and earned income of £1,000 a year, will pay over £300

Sir Kingsley's proposal that in Income Tax under the new. proposals an increase of £90. reductions in individual income In this instance only a little tax allowances will be offset by more than £48 will be treated as post-war credit in the Post Office

Brazil. has been asked to take Savings Bank introduces a modi- Savings Bank credit,

Altogether Sir Kingsley estified form of the Keyes Plan for care of Italy's interests in Yugo-

slavia, according to a mated the yield of Income Tax compulsory savings.

Janoiro telegram to Vichy The Budget'e <excess" profits for the current your at £605 millions, an increase of

concessions to extractive indus.by Reuter. tries producing metals and ol millions.

will be welcomed "by: overseas mining companies registered in sont level, which the United Kingdom, on whom contribute to avoidance this tax has previously fallenflation. as an effective levy on capital.

Price Stabilisation In the broader economics, field Dealing with industry, the the Budget makes a big advance Chancellor intimated that the by extending the policy of price Excess Profits Tax would remain stabilisation, with the alm of at 100 per cent,

holding wages at about the pre-

Ho indicated that last year's collection of Income Tax was in itself a record, It amounted to £524 millions, which was £13 in excess of the estimate;

E. P. T.

will

greatly of in-

Britain's success in' avoiding Inflation hitherto could not continue if wages were allowed to rise unrestrainedly. INCOME TAX AND SURTAX RISING TO 97.5 PER CENT. ON THE HIGHEST INCOMES, TYPI FIES THE BUDGETS SPARTAN

REUTER. CHARACTER.

IN EDINBURGH

SOLE AGENTS

DODWELL & CO., LTD.

QUEEN'S BUILDING

TEL:20636-28021.