§ The Super-tax is an essential element of our Income Tax system, and the scale which the Royal Commission has put forward, and which I propose to adopt, Is an integral part of the new scheme. I do, however, suggest one small development in the progressive rate which the 94 Commission have recommended. I propose to make an addition of sixpence to the rate applicable to the excess of income beyond £30,000 a year. There seems to have been an apprehension, or rather a misapprehension, current that the effect of the recommendations of the Royal Commission in regard to Income Tax and Super-tax is to provide me with a large additional revenue. That is quite the contrary of the case. The net cost of the changes in the present year will be £2,700,000; in a full year the net cost will be £18,200,000—a very serious loss which I should not be prepared to recommend the Committee to sanction if I did not see my way to make it good by adopting other recommendations which the Commission have made. In other words, the Commission have sought so to frame their Report that when the whole of the recommendations were carried out there should be neither loss nor gain to the revenue on balance, but that there should be a fairer distribution of the burden between the various classes of the community subject to it. Special rates of tax and other Income Tax reliefs were allowed as a War measure for soldiers, sailors and others. They will, of course, now cease, and so will the other temporary reliefs which were introduced to meet special circumstances arising out of the War. The saving of revenue from that course will be £2,000,000.