§ 65. Commander WEDGWOODasked the Secretary of State for India whether the Government of India bear any part of the cost of the War; and, if so, have they increased the taxes to meet the additional expense?
§ Mr. CHAMBERLAINUnder Resolutions passed by both Houses of Parliament 202 on 16th September and 26th November, 1914, India is bearing the ordinary charges of the troops dispatched from India for service in the War. She is also bearing' the additional cost of Indian defence due to the War. The Indian Financial Statement presented to Parliament in May shows the additional taxation that has been imposed.
§ Commander WEDGWOODIs it not a fact that the military expenditure of India has been reduced from £20,500,000 to £20,000,000 this last year?
§ Mr. CHAMBERLAINNo, Sir; the military expenditure of India is larger owing to the War.
§ Commander WEDGWOODBut we are paying the whole cost of the Mesopotamia campaign?
§ Mr. CHAMBERLAINNo, Sir; the military expenditure which is borne by India is larger than it was before.
§ 66. Commander WEDGWOODasked the Secretary of State for India whether Indian manufactories have obtained war profits similar to war profits in this country; if so, whether they are specially taxed as here; and, if not, why this has not been done?
§ Mr. CHAMBERLAINI cannot gene-ralise about Indian manufactories; but the jute industry has certainly been very prosperous during the War and probably in consequence of the War. No special tax on war profits has been imposed in India up to the present.
§ Commander WEDGWOODIs it not a fact that not only the jute industry but also the cotton, the coal, the steel, and the tea industries have been enormously prosperous?
§ Mr. CHAMBERLAINI am not prepared to generalise quite so readily as my hon. and gallant Friend.
§ Commander WEDGWOODWill you inquire?
§ Mr. CHURCHILLIs the question of imposing a war profits tax in India under consideration?
§ Mr. CHAMBERLAINI must, for obvious reasons, respectfully decline to answer any questions as to possible sources of new taxation to be employed in the forthcoming Budget.
§ Mr. CHURCHILLI have asked my right hon. Friend whether it is under consideration; I am not asking for an announcement.
§ Mr. CHAMBERLAINIf my right hon. Friend wants to be assured that this matter did not escape our attention when the last Budget was raised, I can give him that assurance, but I cannot anticipate what the next Budget will be.