CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 124

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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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