The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1854-01-31 00:00:00

THE DUTY ON FIRE INSURANCES.

THE approach to the opening of a session of
Parliament is usually a time for preparing for at-
tacks upon the Exchequer, and agitating for the
repeal of some tax which the agitators profess to
believe the most grievous of all the public burdens.
These projects, though ostensibly designed for the
public benefit, are more commonly dictated by the
self-interests of the promoters, and there is, there-
fore, less cause for complaint when a CHANCELLOR
of the EXCHEQUER receives the deputation with
his blandest smiles, listens to the various argu-
ments which they may have to advance, and finally
bows thew, out of the room with no other satisfac-
tion than that their request shall receive his best
attention. There are few taxes for which much
might not be said in favour of their repeal, but so
long as a national revenue is necessary for the
maintenance of the State, the national credit, and
the national defences, so long will it be necessary
to levy taxes, however grievous the interests of
individials or of classes may endeavour to make
thera appear. There are, however, some taxes to
which this remark will not so particularly apply,
inasmuch as they press, in some degree, unfairly,
and -operate to deter from those measures of pru-
dence which it should be the object of the Govern-
inent to encourage. Of such a nature is the duty
levied upon Insurances from Fire, which is charged
at the rate of three shillings per cent. per annum,
and, as the ordinary rate of premium charged by
Fire-offices for common risks is ls. 6d. per cent.,
it virtually amounts to a tax of two hundred per
cent. The effect of imposing so large a proportion
of duty upon the performance of such a prudent
and proper precaution as Insurance from Fire is
to prevent many from performing it, and it has
been computed that not more than about forty-
two per cent. of the whole property of the kingdom
is insured, although in France, where no duty is
levied, nearly seventy per cent. of the property is
insured. Taking, therefore, this view of the case,
it must be obvious that such a tax is impolitic, and
possesses higher claims for repeal than those which
apply to the majority of other taxes. On the
other hand, its repeal would involve the loss of
£1,100,000 to the Exchequer, and at such a time
as this, when we may be on the eve of an expen-
oive warp and when the ingenuity of a CHANCEL'

i
N.

LOR of the EXCHEQUER -has been fruitlessly
exercised in devising some-new tax which shall be
palatable to his supporters, it is questionable whe-
ther it would be prudent to give up so much upon
the remote chance of obtaining so little as any new
impost would yield. Let us, however, suggest a
[ compromise, so that some advantage may be
afforded to the prudent in humble life, without
making bankrupt the National Exchequer. In all
cases where the premium is three shillings and
under, which would include what are called
hazardous risks, let the duty be reduced to one
shilling per cent, retaining the present duty on
higher rates of premium, which usually apply to
premises used for profitable purposes. Should
this reduction have the effect of inducing many to
avail themselves of the security afforded by Fire
Insurance who have not hitherto done so, the Ex-
chequer may be little or nothing the worse, while
the public, both insured and insurers, will be con-
siderably benefited. The question is now being
agitated by those who go for the entire abolition,
which, of course, cannot be conceded ; but, as it
is customary in every Budget to propose some
change in our fiscal regulations, if only for the
pretence of doing something, the alteration we
have suggested may satisfy, at least for a time,
the requirements of both parties.