Mr. Chamberlain then startled the House by announcing that he
would not abolish the Excess Profits Duty, as had been confidently expected, but would actually increase it from forty to sixty per cent. He proceeded to justify it on the ground of " the continued prevalence of temporary conditions occasioned by the war," though the tax itself has no doubt aggra- vated those conditions. He offered, however, to cancel the increase if the Select Committee would propound a scheme for a levy on " war wealth." The higher duty would only yield £10,000,000 more this year, but would produce £100,000,000 in three years. Furthermore, there would be a new tax of a shilling in the pound on the profits and income of 11)1-kited companies, to run concurrently with Excess Profits Duty, and to yield £35,000,000 apart from that duty in a firll year—but only £3,000,000 this year. This "Corporation Tax " as well as the Excess Profits Duty would be deducted before the assessment of profits for Income Tax. The proposal to increase the Excess Profits Duty. has aroused a. storm: of protest.
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