He intended to keep the petting Tax unaltered, and expected
that it would yield £3,250,000. Income Tax, according to his estimate, would yield £15,500,000 less than last, year. He proposed a new tax of 4d. a gallon on petrol_ and paraffin (excluding home-produced -oils), though the tax will not affect oil for fishing vessels or bunker oil or oil for tractors ; a duty of 6d. on mechanical lighters in order to buttress the match duty ; a safe- guarding Customs duty of 331 per cent. on buttons, and a higher excise duty on British wines—the duty to be raised from is. to is. 6d. He proposed further to reduce the duty on imported raw sugar and on Empire and ,home-grown sugar by id. a lb. in order to benefit the consumer and British refiners. There will be a reduction in motor licence duties on lighter goods-vehicles - and hackney vehicles, and a 20 per cent. rebate on licence duties on all heavy- vehicles if fitted with pneumatic tyres. Mr. Churchill explained that he had found imprac- ticable the substitution of a heavier petrol tax for the horse-power tax on motors. The complications—the number of rebates which would be necessary, for instance —were enormous. Income Tax payers will receive higher allowances for children-160 instead of £86 for the first child and £50 instead of £27 for other children. This concession to Income Tax payers_ was unexpected and is most welcome. The tax on paraffin, however, is regrettable. Paraffin is the illuminant of the cottager.
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