1940-04-24 — Page 7

Wednesday,

HONGKONG TELEGRAPH

SIMON'S MAMMOTH "WIN THE ATTLEE'S

WAR" TAXATION PLANS

Thero would be similar increases for letters and postcards in the Im- perial Post except that the present rates would be retained for corres

crease as follows:

The rates for Foreign Post will in-

FROM PAGE ONE export trade by Improving the condi-pondence with the forces overseas. tions on which drawback was payable on exported goods which had beent

For letters from 2d. to 3d. subject, on importation, to kay

For postcards from 14d, to 2d. Industries' duties; (2) The proposal

Neither in the Imperial nor Foreign would relate to a margin of profer ence on Empire sugar, the stability Post were any Increases proposed for of which was related to the operation other classes of mall in view of the of the International Sugar Agree-importance of those services to the

export trade. ment of 1937.

The object of the legislation would be to make it clear that the present; preference would continue to the end of August, 1942, the period originally, contemplated under the Agreement.

It was, however, necessary to im- pose additional taxes to increase the total of £1,139,000,000 of revenue which would be produced if they con- Aned themselves to the provisions enforced last year,

No Air Mail Increases

be Thero would

BO increased charges in air mail.

It was also proposed to make some changes in poundage charge on postal orders,

All these postal changes would pro- duce this year £10,400,000 and in a full year would produce £11,400,000. In inland telephone service there would be a general increase of 15 per cent. on all charges to subscribers with exchange facilities and to usera of telephones with coin boxes.

This was to take effect from May 1 in the case of trunk calls and all Sir John continued: "In the field of direct taxation, I must bring into calls from pubile call offices and from

Direct And Indirect Taxation Sir John said he must, therefore, look both to direct and indirect taxa-

ilon

COMMENTS

Criticises Increased

Post Rates

LONDON, Apr. 23 (Reuter)--Mr.

British Oil For Japan

April 24, 1940.

THREAT TO TRONDHEIM

́Allied Forces Still

Searching Questions In House Of Commons LONDON, Apr. 23 (Router). C. R. Attlee, the Labour Opposition In the House of Commons to Leader, approved the taxes on beer day, Mr., Geoffrey Lloyd, spirits, tobacco and matches, but thought that the Postal tax would Secretary for Mines, was naked not bring in a great deal of money to state how much oil was sold, gress.

Closing In

LONDON, Apr. 23 (Router). The Allied forces which are closing in on Trondheim are reported to be making good pro-

There is nothing official yet to

ол

SOCKS

and would irritate a vast number of and delivered to Japan by the indicate whether or not the War Of Allen Solly people,

was glad itint Sir John Simon Anglo-Iranian Oil Company behu Trondheim or other areas in mind favoured voluntary against compul- tween September, 1939, and when it issued a communique sory saving and declared that nothing March, 1940.

Monday night stating that the Allied He was asked to give the Govern-troops were. meeting with consider- stood in the way, of national saving so much as a means test.

ment holdings in the Company and to able success in the face of great slate whether the sales had been difficulties. Pays Tribute To Chancellor mado with the knowledge of the Gov-

For some time to come omelat news for Summer Sir Archibald Sinclair, the Liberal ernment. He was also asked whether of the British Expeditionary Force is likely to be on equally general terms. Opposition Leader, paid tribute to price concessions were involved, Sir John. Simon's clear exposition of

Pure Commercial Sales However, there are

Armies Said Face To Faco "In replying, Mr. Geoffrey Lloyd

a MAES of the Budget problems. He said that he could not complain that the pro- said that the company supply quan unofficial reports about Trondheim posals were too drastic, and declared titles of Iranfun oll to Japan on a stating that north of the city the that Germany this year was spend-purely commercial basis.

Allies

are for down the railway from ing £2,300,000,000 on the war and

Nomsos. Although the Government have a the French people were making a majority holding in the

One report even says that they are Company vastly greater effort than Sir John they had announced that their policy at Lavanger, which is only 33 miles now facing entrenched German troops Simon had asked of us today. was not to interfere with the com-

He concluded

from Trondheim.

The Allied

has been In- progress dicated by the number of railway

bombed by the Germans. stations

Only One Casualty LONDON, Apr. 23 (Reuter),-Only one French soldier is reported to have been killed by the heavy Ger- man afr bombardment which ruined Namsos.

netual operation proposals for In-July 1 in the care of rentals and mis- Chancellor that the figures the mercial activity of the Company,

the

given the House were clear and eloquent proof of the

and power greatness of our

our resources, and the House's determined and humorous reception of the proposals testified to the high spirit and firm

un victory.

cellaneous charges. crensing the standard rates and For private telephone services there reducing allowances, which I indient-would be an increase of 25 per cent. ed in advance lost September,

to take effect from July 1, "I then said that we should not

Inland telephone charges werd limit our view to six months alone, estimated to produce this year just purpose of a united Britain resolved Accordingly propose

a full year Finance Bill to raise the standard over £2,000,000 and in

£2,850,000. rate of Income tax from SOVED In inland telegraph service

the shillings to

shillings six there would be seven

a fixed additional дене. These are very severe In there

1.

ench creases which put a heavier bur-hority of greetings Lofesmm on each country than the direct tax-payer night telegraph letters and on each has ever been called to pay before. page of press telegrams. "The Fiandard rate tax will have been increased within a a single year from Ave shillings and six pence to Reven shilings and six pence. With the surtax added, the maximum rate will reach 17 shillings is the pound, All-Time Record

den on direct taxation in th

"Nothing on this scale has ever

or

per

There would also be an increase of 23 cent. for private telegraph services to operate from July 1.

These increases in Inland telegraph estimated to yield services were

£100,000 this year and £240,000 in a full year.

No increases were proposed in been approached before, whether charges for oversens telegraph and in war, or peace. The highest telephone services which were neces-

iax was sarily limited in war time. previous rate of income

All Increases in post office charges, Rix shilings in 1918 and with

were estimated to supertax added, the maximum dur- token together,

£12,500,000 this year and the iost war was 109, 6d in the yield

£14,500,000 in a full year.

Purchase Tax Sir

wave lustralluns of the effects of the proposed taxation, say-

regret, therefore, that it is im possible to give the details asked," he added.

He did not reply to # question asking if he were aware that trans actions of this kind gave a very bad Impression in the United States where the actions of His Majesty's Govern ment or the actions of the Company were watched very closely.

hns

troops

The main body of Allied was by this time well inland.

British trains, it is reported,

Budget Well Received LONDON, Apr. 23 (Reuter).—The Mr. Hugh Dalton asked if Mr. Budget, on whole, well-re-Geoffrey could give an assure eelved by members of all parties, says ance that this en was mee get that have reached several points about 3

Germany directly or indirectly, "Reuter's" Lobby Correspondent.

"Not without notice," he replied. IMPORTANT DECISIONS

The Labour Opposition is not dis- posed to be very critical of the pro- posals as a number of them follow |

that they advoenting persistently.

With regard to the other Parties,

the lincs

have

been

the chief criticisms are likely to come on the new purchase tax, but in re- gard to the method rather than the principle.

Criticism is also expected on the proposal to restrict dividends which, it is feared, may pénailse companies which have been using profits to promote business instead of paying large dividends,

The increased postal charges ore also criticised, but on the whole mem- Sir John Simon' then referred to

bers realise very fully the need of ing that a married man without chil-" novel proposal" to provide addi-sacrifices and are confident that the

the year, tional revenue. dren, if he earned £300 a would pay £15 income tax instead: of £7 last year and £5 the year be- Tax Proposed to call it a Purchase country will respond to

fore.

If he earned £400 a year, he would pay £30 12s. 6d. Instead of £17. 10s. last year and £12, 12s. 6d. the year

before.

He

"Sales taxes of different kinds are in operation in a large number of countries and in most of the Domin- tons. I think, but the methods and machinery differ considerably.

great

The 2000 a year man would pay "The one I am about to propose is £92. 188. 3d. instead of 573. 108 a purchase tax in a form of percent- last year and £30. 12s. Od. the age on the price which will be paid previous year.

at the stage when the wholesaler is These changes, together with selling to the retailer. One minor ones, would produce in this advantage in applying the tax at this year from direct laxation, 242,-point is that it makes it easy to 500,000 and in a full year £61. secure that there shall be no purchase 750,000.

tax imposed in respect of the goods More Surtax

for export." Another change was in respect of Secks £1,234,000,000 Revenue surtax, which for 1040-41, he pro-! Concluding, Sir John emphasised posed should be charged on incomes that the total of £1,234,090,000 which in excess of £1,500 a year instead of the was seeking to get from revenue £2,000. It did not increase the tax this year was the largest figure ever payable this year by those with in-drawn from taxation in 12 months comes between £1,500 and £2,000, In the history of British finance, and but it made It possible to do so in 12 It was inevitable, when the total "months' Emer

by modern warfare, that taxes should entirely keep in step with it.

yet

cellor's appeal.

Chan-

REACHED

FROM PAGE ONE

Poland was represented by General Vladislaw Sikorski (Premier) and M. August Zaleski (Foreign Minister).

Norway was représented by M. Bachke, the Norwegion Minister in Paris.

New Decisions Reached

to 40 miles south of Trondheim.

It must be emphasised, however, that nearly all these frontier reports

awalt offletul confirmation. AIRDROMES

BOMBED

Reckless Daring By British Planes

LONDON, Apr. 23 (Reuter), There was a general exchange ofIt is authoritatively learned views on all political and military problems requiring the close atten- that air force attacks were made tion of the Allied Governments at on Fornebu' and Kjeller acro- present in order to ensure due and dromes early this morning. timely fuldment of the underlaking of the Allies and the common defence of their interests against any hostile action.

After having considered all ques- tions relating to the general conduct of the war, the Council reached new decisions designed to unrantee effective co-operation in all clt- cumstances of the Allion.

Fornebu air base was recently completed as a civil aerodrome.

High explosives and incendiary bombs

were dropped on both aerodromes and a large fire was left blazing opposite the hangars and buildings at Fornebu.

Narvik Not In Ruins

Severe Opposition Consideration Shown

The bontbers which heavily bombed Poland's Determination Aalborg aerodrome for the third By British Warships.

General Sikorski assured the successive time last night were met Counell at the determination with with the most severe opposition yet STOCKHOLM, Apr. 23 (Reu-which the Polish Government, Army encountered from the ground defences

who and people would continue to struggle at this aerodrome. seamen, ter).-Swedish

have just arrived from Narvik, have denied reports that the town is a mass of ruins, in an

published in interview

"Afton Bladet."

with all their resources, which are at The gun batteries had obviously the moment in process of active re-been reinforced since the previous organisation and development. jnight and they opened intense fre The Council expressed great ap-concentrating over the target area as thepreciation of the spirit Inspiring each aircraft attacked.

these efforts and welcome the effec tive contribution Poland is making to the common cause,

M. Reynaud, Mr. Chamberlain and General Siltorski invited M. Bachke,

They declare: "Only two or three houses at Narvik have been damaged. The British warships which bombard-

work, displaying every consideration for the civilian population."

|

One Machine Hit

One British machine was hit by a small shell which damaged one of the engines. However, the machine was able to complete the attack and

In the realm of indirect taxation. Expenditure mounted at the pace-seted-the-town-went-- methodically to the Norwegian Minister,-to-express- return safely to its base~~--

he proposed to add to the existing duties on beer, spirits, tobacco and matches.

The inercase un beer would be roughly equivalent to one penny per pint, which would take effect from to-morrow.

We were bound this year, according to his calculations, to contémplate an expenditure of at least £850,000,000 more than the

£185,000,000

WCB

drawing year,

He more from taxation,

Must Increase Savings. What was the conclusion? The saving and lending of savings to the State must be proportionately

creased.

This increase in beer duty, he estimated, would produce £18,000,- 000 in a full year and £16,000,000 in the current financial year,

Whisky To Cost 16s. A Bottle

The spirit duty would be increased "It is an essential part of our war by 155. per proof gallon making it purpose that this should be achieved. UTS. Gd.

Provided that the persistence of our The ruling price for a bottle of people in supporting the present loans whisky was 14s, 34 and the Increase and the resolution of our people in would be equivalent to the addition paying the Government taxes is of la. 94.

maintained, we have nothing to fear. Sir John Simon thanked the Our financial front will hold as firmly French Government for agreeing to as any other front in the fight for waive their treaty rights and permit victory." (Cheers). the increase to apply to French and other imported spirits,

Purchase Tax Effects "There is a strenuous drive under The increased duty on spirtis, which was to take effect from to the President of the Board of Trade," morrow, would yield £7,000,000 for continued Sir John, "to increase our a full year and £6,500,000 for this exports. year..

Tobacco Incrassos

Thoma

"At the same time it is necessary to discourage unnecessary spending at The tobacco duty would be Increase The purchase tax won't touch the ed from to-morrow by 48. per pound raw material in industry.

"Another exception is that there or 3d. an ounce with corresponding increases in other duties such as on will be no purchase tax on food in cigars.

cluding drink or foodstuffs whether This increase following the two for human or animal consumption.

There will also be no purchase tax Increases last year was severe but in the existing financial circumstances in articles already subject to heavy there was no escape from this addi-duty as tobacco or poel gos, electricity y as tobacco or petrol or in respect of services The increased yield from the extrajor water.

subsequent legislation will provide tobacco duty, he estimated at £23,-) 000,000 for a full year and £21,000 for the date and imposition of the tax and the rate at which it will be 300 for this year.

applied to be delermined by a resolu- tion made in the House of Commons."

tion.

With regard to matches it was pro- posed to double the excise duties and make corresponding additions focus- toms duties.

4

d.

£101,000,000 Yield

The yield of extra taxation in the current year, he said,, would total £101,000,000.

No Civilians Killed

The scumen added that as far as they knew, not one civilian was killed during the bombardment.

The British, they declare, have not actually been in the town. The nearest they have been was when 'n warship's boat approached the quay, but was forced to turn back under German machine-gun fire.

methods of borrowing. found and they must foster and ime prove conditions in which the flow of valuniary contributions to the Gov- ernment might be stimulated and in- flation avoided.

That amount would and must be

Whatever measures would help to restrict the misuse of spending power and especially the misuse of increasing spending power wern of vital Importance.

Food Price Control

It had been their policy to secure the price of essential foodstuffs in rationed quantities even though this, involved considerable cost to the Exchequer.

1000

They were now spending £00,000,-

a year to cheapen prices in cer- tain essential foodstuffs.

Control has been taken over of a variety of industries and the control of foreign exchange.

Sir John said that the profits lose a Dealing with the excess profits tax,

great deal of their value if they were distributed freely as dividends.

Limitation Of Dividends "They will be very useful if they are available to assist industries and to repair industry in the dificult period which will follow at the end

to his Government their admiration Despite opposition all the attacks for the herole resistance to thewere pressed home and a large num- Invader by the people of Norway ber of bombs were seen to burst on under the inspiring tendership of the serodrome surface and runways. King Haakon.

M. Bachke conveyed the thanks of his Government for the speed and effectiveness of the help given Nor- way by the Allied Governments.

Nazi Flying Ace Killed

also made ♫

Of Capital Importance

(Reuter).—A PARIS, Apr. 23 (Reuter)-The BERLIN, Apr. 23 impression in authoritative circles well-known long distance flyer, Cap- here is that the

Wide

exchange of tain Alfred Henke, has been killed views at the latest meetings of the on a training flight, Supreme War Council will play his non-stop fights from Berlin to Captain Henke is well-known for role of capital importance in the conduct and development of the war. New York and from New York to

Reference in the communique to Berlin in 1038. He the fulfilment of the undertakings record flight to Tokyo, of the Allies and the common de- fence of their interests la inter- that preted here as clear evidence Britain and Franco are vigilanily watching their interests in the Mediterranean, are ready to face any adverse action, and will on no account be taken by surprise. Importance is attached in the same circles to the presence of Norwegian representatives at the Council.

Battle Off Sweden

Worrying

is a symptom of NERVE EXHAUSTION

Of course, PHOS- FERINE cannot. re- move the external Believed Attack On

of causes

your Nazi Transports

anxieties, but assuredly it will STOCKHOLM, Apr. 28 (Rouenable you to face ter)-Violent gunfire was heard | off the Swedish coast to-day, them with the feal- according to a newspaper reporting of confidence to

Ten warships were observed off overcome them. Ursholm travelling at high speed and firing as they went.

bombers.

It is believed that a fleet of Ger- man transports was being attacked.

of the war. But they are of less A large number of aircraft were A box of fifty matches now costing

value it used for increased distribu-seen at the same time, and fighter a penny would cost

These proposals, which would take

To that must be added £1,113,000,-tion into the hands of shareholders planes appeared to be engaged against effect from April 20, would produce 000 as revenue from taxation on last who might be tempted to devote n good deal to them for the purpose of this year rather more than £3,000,- year's basts,

consumption. 000 and in a full year £4,000,000, It was thus estimated that the total

There would be countervailing in contribution from revenuo was "I propose, accordingly, to provide

In duties on mechanical £1,234,000,000. Increased Postal Charger carried through, he hoped to get some Regarding the post office charge thing from the purchase tax before the general scheme was to increase the end of the year. certain initial postal charges but to leave all charges for excess weight untouched.

creases

lighters,

The initial rates for Inland Post would be increased as follows:

For letters to two ounces from 144 to 24d."

for the limitation of dividends by

If preliminary arrangements were publio companies. · The legislation

£1,439,000,000 Deficit

propose that a public company should not distribute a greater dividend on

ordinary shares than was distributed on any of lie ihres pre-war years.

SAAR DISTRICT. BAN DECLARED

LONDON, Apr. 23 (Reuter).The western part of the province

The central question of the Budget, The minimum rate on dividends Saar district, the Rhineland and the more important than taxes was how would be allowed in the case of com-

of

the remaining amount of £1,433,000,-panics which in the recent past have Baden were declared banned dis- 1000 was to be provided. He was opposed to

a-suggestion

not been able to pay dividends.

tricts in an announcement on the "In order to make the plan water-German wireless to-night.

the Nobody will be allowed to enter put forward for compulsory deduc- tight he proposed to prohibit tion from incomes and he advised the issue of bonus shares during the war, these districts without special mill- For printed papers by 140. per House to rely on the result that could save in cases where entirely exceptary permission, which will be be obtained by stimulating to the tional grounds existed such as that of granted only in the most urgent lutmost the response to their existing two companies amalgamating.

For postcards from 18 to 28.

packet.

For newspapers by žid.

enses.

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