HC Deb 01 May 1882 vol 268 cc1830-2
MR. BUXTON

asked Mr. Chancellor of the Exchequer, Whether, considering that he has declared himself unable to repeal the Railway Passenger Duty, and that his predecessor has admitted that The state of the Law on the subject is one which cannot he permanent, and ought not to be permanently maintained, he is prepared to bring in a Bill for the better regulation of the Exemption from the Duty, which may be capable of enforcement?

MR. BROADHURST

asked Mr. Chancellor of the Exchequer, Whether, considering that ho is unable to repeal the Railway Passenger Duty, and that the Cheap Trains Act of 1844 has been practically abrogated by judicial decisions, which, though only partially put in force, have increased the duty on third class passengers from £70,322 in 1873, to £333,032 in 1880, he will at the earliest opportunity bring in a Bill to carry out the intention of the Cheap Trains Act, namely, to exempt from duty the fares of "the poorer class of travellers" when such fares do not exceed the rate of one penny per mile.

MR. THOROLD ROGERS

asked Mr. Chancellor of the Exchequer, Whether, considering that a Select Committee of this House reported in 1876 that the Board of Inland Revenue make arrangements with the Railway Companies respecting the exemption from Passenger Duty, based on three different plans, "which are all entirely outside the Cheap Trains Act," and that the same Committee recommended, inter alia, that until the finances of the State warrant the abolition of the Tax, it should be restricted to fares over a penny per mile, he will bring in a Bill which will carry out this recommendation, or, at any rate, will establish a harmony between the intentions of the Legislature and the practice of the Board of Inland Revenue?

MR. R. BIDDULPH MARTIN

asked Mr. Chancellor of the Exchequer, since by 5 and 6 Vic. c. 79, s. 4, it is enacted that the Company of Proprietors of every Railway in Great Britain shall cause copies of the accounts of their respective Railways to be delivered to the Commissioners of Stamps and Taxes, verified by affidavit, and Duties to be paid thereon monthly, and since such Duties have been from time to time further settled and enacted, Whether it is competent for any Railway Company to charge such Duties on the passengers; whether any such Duty so charged on the passenger does not be-come part of the fare payable, and is itself liable to a Duty, provided that the fare and Duty together do not exceed the maximum toll authorised to be levied under any public or private Act; whether his attention has been called to the fact that the South-Eastern Railway Company charge their season ticket holders with the amount of Duty payable, in addition to the advertised, fare; and, whether he has collected or intends to collect from the South Eastern Railway Company (and any other Company whose practice is identical) the Duty on the fare collected under the name of Duty, and on all arrears thereof?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GLADSTONE)

In answer to the first Question, there is no doubt it will be necessary at some future time to modify the provisions of the Cheap Trains Act, in order to adapt them to the changes in the mode of conducting passsenger traffic. But I do not think I can hold out any expectation of being able to legislate on the matter at present. I am truly concerned at being compelled, from week to week, to make the state of Business in Parliament a reason why the legitimate demands of the country, quite apart from Party distinction, should be postponed; but my hon. Friends are judges of the circumstances along with myself, and I think they will understand my answer. In answer to the second Question, the Cheap Trains Act of 1844 has not been practically abrogated by judicial decisions, but rather confirmed; and those decisions have only led to an increased charge of duty in cases where the Act, in the view of the Board of Inland Revenue, had not been complied with according to its full meaning. The increase in the duty on third-class passengers from £70,322 in 1873 to £333,032 in 1880 was not entirely due to increase charge, but was largely due to the immense increase in the number of third-class passengers. The intention of the Cheap Trains Act, which exempted from duty the fares of the poorer class of passengers, is, in the opinion of the Revenue Department, fairly carried out at present, but, as they think, with possibly somewhat less strictness than the law warrants or even might require. As to the third Question, I have to say that the restriction on the Passenger Duty to fares above 1d. per mile would involve a loss to the Revenue, I am sorry to say, of £250,000 a-year. As to the fourth Question, it is quite within the competency of any Railway Company to charge duties on fares from passengers, provided they do not exceed the limit laid down in the Act; and there is no provision in law to prevent the Company from dividing the charge as between them and the passengers into two portions—one portion being for the fare and the other for the duty.