§ Then, there is the Estate Duty. In the case of Estate Duty, an increase of 10 per cent. in the scale was imposed by the first war Budget on all Estates exceeding £10,000 in value. I propose to add a further 10 per cent. over the same range of estates which raises the graduation of the Estate Duty to a peak rate of 65 per cent, of the value. This is estimated to produce about £6,000,000 in a full year and £1,000,000 in the current year. The Committee should observe that the full year contribution of the direct taxpayer under these proposals amounts to £101,000,000, made up of £84,000,000 for Income Tax, £11,000,000 for Surtax, and £6,000,000 for Estate Duty.
§ There is another series of figures which I would like to bring before Members of the Committee in order that they may appreciate the position. The increases of direct taxation effected by the April Budget of this year were estimated to produce in a full year £62,000,000. Since then the rate of Excess Profits Tax has been raised to 100 per cent., and I expect the increase in that tax to yield a further £40,000,000 in a full year, so 645 that the full year gain from the increase in direct taxation imposed this year amounts in all to £203,000,000. I recognise that this will involve further sacrifices, many readjustments, and in some cases hardship, but I believe that all affected will regard it, as it is, as a necessary contribution to our war effort.
§ There are two matters in connection with the increase of the Income Tax in regard to which I shall propose an amendment of the existing law. One relates to the incidence of the tax and the other to its collection.