THE EXCESS PROFITS TAX.
[To me Emma or rue "SPESTATOB."1 Ste,—Being a Manufacturer myself, I read naturally with great interest the able letter of " Zero " in your issue of July 21st. Although- a stranger, I hope I may 'be pardoned in entering on a purely English question, on the plea that my country having derived from England such a large part—and, admittedly, the best—of its financial laws.and organization. this, intrusion might
be regarded as an honest attempt to pay back a part, however minimal, of our great debt. Excess Profits Tax is as hard in Italy as anywhere else; and, bringing- into account the way it is enforced, perhaps harder; but a very wise point has been settled by the legislators. All new plants and installations have a special treatment 011 the balance-sheet, inasmuch as 80 per cent. of their cost may be written off in a period of three years—namely, 1910, 1915, 1916, or 1915, 1917, 1919. This 80 per cent. amount is estimated to be the excess price of the plant due to the war, the remainiug 20 per cent. being written oil by the normal methods.
The need for such a measure was certainly much greater in an industrially new land like mine than in the Mother Country of all Modern Industry; nevertheless, I think this might be au interesting point for your readers, as it provides a sound combina- tion of the needs of actual taxation and the limitation of excess profits, with foresight for after-the-war problems.—I am, Sir, Grand Hotel du restore, Napoli. SkLVATI.
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