China Incident Costs to Be Over Y.4,000,000,000 in Coming Year: Budget Strain Emerging Tokyo, Jan. 7. TIN an extensive programme for increased taxation to prepare for protracted Sino-Japanese hostilities, the Finance Ministry will soon submit a bill for this to the Diet. The increase in revenue expected is ¥.800,000,000 of which Y.100,000,000 will accrue from. special taxes now in force.
This special taxation will be prolonged to cope with the emergency situation caused by the North China incident, It is to be continued until the end of hostilities, and may be in force for one year after their termina~ tion. Domei was informed. The programme was considered necessary to avoid further issues of "baby bonds.'
Most of the special taxes will be levied on industrialists and business men enjoying "war prosperity' rather than on the general public, it was indicated, The tax increases will affect incomes, business profits, toilet goods, communications, new. houses and other buildings, transfers of securlties, bonds, share dividends, alcoholic beverages, "sugar, textiles, all, and other products.
Exemptions from income taxes for persons may also be lowered from $1,200 to ¥1,000.—Domel. prinelptes on which the Ministry of Finange formulated the new Budget
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