Mr. Gladstone’s Speech on the Budget.
The estimate of revenue for the year he took as follows: In the customs the duty on chicory would be doubled, bringing in £15,000; and the estimate of the customs was £23,585,000; excise, £19,463,000; stamps, £8,460,000. It was proposed to reduce the hawker’s licence duty for the year from £4 to £2; and to allow half-yearly licences. There was to be a change in the licensing of wine and refreshment houses, which would produce about £20,000. There was to be an alteration in the mode of licensing for the selling of spirits: that is, the wholesale dealers, by paying a duty of £3 3s. would be allowed to sell spirits retail, which would bring in about £5,000. Stamps on agreements for furnished houses for a part of the year would be only five shillings instead of ad valorem, as now; and house agents would have to take out a £2 licence. Stamps on foreign bills of exchange would be levied in a different manner. The revenue from taxes would be £3,050,000; income tax, £11,200,000, Post Office £3,500,000, Crown Lands £295,000, and miscellaneous £1,400,000; and the indemnity from China received in the financial year £750,000, making a total revenue of £71,823,000, being a surplus of £1,923,000, over an estimated expenditure of £69,900,000.
The Government had come to the conclusion that it would not be justified in keeping so large a balance in hand and it was proposed to apply it to the diminution of taxation. There were four articles which would at once present themselves to notice—viz., the tea and sugar duties, the tenth penny of the income tax, and the paper duty. It was proposed to remit the penny on the income tax which was imposed last year. This remission would cause a loss in the present financial year of £850,000. The rate would be 9d. in the pound on incomes above £150 a year, and 6d. in the pound on those above £100.
It was next proposed to repeal the duty on paper on October 1, making a loss of revenue in the year of about £665,000. The surplus for the year would be £408,000....
Referring to what were called the minor charges on commercial operations, he stated that the charges were about £320,000, and the Exchequer could not surrender that sum.
As to the portions of the reduced income tax and the duty on paper, the loss of which would fall on the year 1862–3, to the extent of about £800,000, that would probably be provided for by the sum payable for indemnity from China, and reductions in military estimates. It was only proposed to re-enact the income tax and tea and sugar duties for one year.