CO129-582-17 War expenditure- contribution to H.M. Government 2-10-1939 - 12-10-1939 — Page 14

(1

14

14

END

(B) Ordinary revenue to be increased by (1) proceeds of

additional taxation designed to check imports; proposal follows in

parate telegram. Nett increased yield very difficult to estimate

owing to the effect on consumption but expected to be more than

$1,000,000 per annum (2) adoption of certain minor recommendations

of the Taxation Committee which are already in train and may yield

$100,000 per annum or more.

On receipt of your approval and acceptance of principles

preliminary considerations of the

by the Legislative Council

draft Income Tax Legislation rates of allowances, etc., would

commence at once leaving final decision on details until the

arrival of expert from home if available.

I should like to announce general intention to

carry through these proposals at the meeting of the Eegislative

Council on the 12th October when it has already been arranged

to present the 1940/41 budget and to give the members of the

Council advance intimation in confidence as long as possible

before that meeting I should therefore be grateful for your

decision in principle at earliest possible moment, details being

if necessary reserved for further consideration.

2