27 APRIL 1918, Page 3

Mr. Bonar Law announced that the normal rate of Income

Tax would be raised from five to six shillings in the pound on incomes of more than £500. The married taxpayer with an income not exceeding £800 would be allowed an abatement of the tax on £25 not only for each of his children under sixteen, but also for his wife and for any aged and infirm person dependent upon him. The higher tax would yield £11,250,000 more this year, and in a full year £41,400,000. If the double Income Tax within the Empire amounted to six shillings in the pound on an income, the extra shilling would not be charged. The Super Tax would be increased to 45. 6d. in the pound, and would begin at incomes of £2,500. The combined tax, for example, on an income of £20,000 would be 9s. 5d. in the pound. The new Super Tax would yield £9,250,000 more this year, and £14,150,000 in a full year. The farmer, who did not keep accounts, would be assessed not, as now, on his rent, but on twice that amount ; he might, as an alternative, keep accounts and be assessed under Schedule D. The higher tax on the farmers would bring in £2,500,000 this year, and £5,300,000 in a full year.