65. Colonel NEWMANasked the Prime Minister whether he is aware of the increased profits and larger dividends that are being declared by the great German combines in the dye, chemical and electrical work industries; and whether German industry is unhampered by Excess Profits Duty and is consequently able to operate at an advantage as compared with Great Britain?
§ Mr. BRIDGEMANI have been asked to reply. I have seen references to increased profits and dividends in a number of cases, but having regard to the fall in the value of the mark, I do not think it is possible to draw any inference as to a real increase in yield from the industries mentioned. I believe that the German War Profits Taxes have not been prolonged beyond last year, but my hon. and gallant Friend is no doubt aware that, besides the Income Tax, which is now graduated up to 60 per cent., German capitalists have to pay a 10 per cent. flat rate tax on the yield of capital, a further tax on corporation profits graduated according to the rate of dividend up to a maximum of 20 per cent. (which is in the nature of an Excess Profits Tax) and a capital levy assessed on individuals and payable at a maximum rate of 65 per cent on fortunes exceeding 100,000,000 marks.