CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 8

to Mt. Gent

/ copy to

"

M. Andrews

M. Galwang year.

722

Trs. cific estimates

17.11.89

Co

as passed by Lag.

8

Actually an increase of

$1,600,000 on a 15-month basis,

No very important change has been made

since the draft Estimates at (1) were submitted.

On the revenue side the new duties on petrol and

liquor have been taken into account to the extent of a

نہ

million dollars and there have been certain increases

,

on the expenditure side, among them the provision of a

or $1,280,000 on million dollars for special war expenditure. a 12-month one,

No

has been estimated allowance has been made for increased costs of for.

materials, etc., resulting from the war, and the

question of special war taxation had not been settled.

The proposal to introduce Income Tax, which drew the

fire of unofficial members of the Legislative Council

away from aspects of the budget which they might have

been expected to criticise has been dealt with on the

Taxation file (54002/39) and is not reflected in these

Estimates. It is now understood unofficially that

Income Tax is likely to be dropped and substitute

taxation adopted to produce approximately the same

amount which, it will be remembered, was supposed to

be ten million dollars. Out of this it had been

proposed to allocate two million (i.e. one million more than these Estimates allow for) to local war

expenditure and the remainder to assist His Majesty's Government in its war effort. (proposals to this end

are being dealt with on a Defence file).

Information taken from 54002/39.

As the Estimates stand, the position on

31.3.41 (they are for a 15 month period) would be as

follows, excluding loan accounts from consideration:-

Revenue