The Government, alarmed by sudden price increases and fearing they would go still higher, today acted to trim some customs and excise tax increases and to subsidize food costs in special cases.
The jumps in food prices had been expected after the higher taxes took effect simultaneously with abolition of subsidies on certain basic foods. But the increases were much higher than had been anticipated by Government economists.
Another factor in the price-tax slowdown was the sharp protests of leftist parties and labor leaders. They complained against the combination of higher prices and the compulsory immigration loan which, they said, put an undue burden on low and medium-range wage earners.
Under the new policy, some food prices will be lowered slightly. Certain types of social cases, such as those on relief, will receive special compensations for the higher food prices, and children under 15 will have their special lower-priced sugar rations reinstated. Treasury officials estimated the retrenchments would cut government income by 10 to 15 million pounds.
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