Sir John Simon Stresses Need to Avoid Inflation Government Effort to Keep Food Cheap Revealed London, Apr. 24. (OSIDES having to pay more income-tax, Britons in future will have to pay more for their beer, whisky and tobacco as the result of an all-round increase in taxation announced by the Chancellor of the Exchequer, Sir John Simon, in presenting his second war-time Budget in the House of Commons yesterday. He announced, among other things, that income tax would be raised from Ts. to 7s 6d. and a surtax would be levied on annual incomes of over £1,500; telephone charges would be increased 15 per cent.; there would be a new percentage tax on sales by a wholesaler to a retailer, except in the case of human and animal foods, drinks, fuel, and heavily taxed goods like tobacco; duty on beer would be increased a penny a pint; duty on a bottle of whisky would be increased by Is, 9d.; tax on tobacco would be increased to 4s. a lb., and the match tax would be 50 pence per gross of boxes; inland letter post would be increased by id., and foreign postage would be 3d, instead of 242d. while duty on spirits would be increased by 15s. per proof gallon, making it 97s 6d, After informing the House of his intention to raise the standard rate of income-tax from 7s. to 7s 6d. and to reduce allowances, Sir John Simon continued "These are very severe increases, which put a heavier burden on direct taxation in this country than the direct taxpayer has ever been called on to pay before. The standard rate tax will have been increased within a single year from 5s, 6d. to 7s. 6d.
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