I move:—
(1) That, nothwithstanding anything to the contrary contained in Section 1 of the Finance Act, 1938 (No. 25 of 1938), the following provisions shall have effect in relation to the surtax charged for the year beginning on the 6th day of April, 1938, that is to say:—
(a) the rates at which the said surtax shall be charged in respect of the income of any individual which exceeds £3,000 but does not exceed £8,000 shall (subject to the subsequent provisions of this Resolution) be the several rates at which the said surtax is chargeable by virtue of the said Section I increased, in the case of each such rate, by 10 per cent.;
(b) the rates at which the said surtax shall be charged in respect of the income of any individual which exceeds £8,000 shall (subject to the subsequent provisions of this Resolution) be the several rates at which the said surtax is chargeable by virtue of the said Section 1 increased, in the case of each such rate, by 15 per cent.
(2) That in the case of any individual to whom sub-paragraph (a) of the foregoing paragraph of this Resolution applies, the amount of surtax with which he is charged by virtue of the said sub-paragraph (a) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—
(a) the amount of surtax which he would be liable to pay if his income had reached but had not exceeded £3,000, and
(b) the amount by which his income exceeds £3,000 reduced by income-tax at the standard rate on such excess.
(3) That in the case of any individual to whom sub-paragraph (b) of paragraph (1) of this Resolution applies, the amount of the surtax with which he is charged by virtue of the said sub-paragraph (b) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—
(a) the amount of the surtax which he would be liable to pay if his income had reached but had not exceeded £8,000, and
(b) the amount by which his income exceeds £8,000 reduced by income-tax at the standard rate on such excess.
(4) That the amount payable by virtue of any assessment, made before the passing of this Resolution, in respect of surtax for the year beginning on the 6th day of April, 1938, to which any of the foregoing provisions of this Resolution applies shall, by virtue of this Resolution and without more, be deemed to be so varied as to give effect to such of the said provisions as is or are applicable.
(5) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).
This is the Resolution which provides for the increase in the surtax rates which I mentioned in the Budget statement.
