§ 18. Mr. Alfred Morrisasked the Chancellor of the Exchequer what estimate he has made of the number of additional civil servants required on the basis that revenue now collected under Purchase Tax is raised from a tax on value added; what would be the additional cost of collection; and if he will make a statement.
§ Mr. DiamondThe extent of the requirement for extra staff would depend on the form and coverage of the new taxation.
§ Mr. MorrisWould not my right hon. Friend agree that this would not only be a very bad tax for the consumer but, at least in present circumstances and because of the increased administrative burden, a mad tax for this country?
§ Mr. DiamondThese are adjectives which seem somewhat out of keeping with my hon. Friend's normally temperate approach.
§ Mr. LubbockWhen the right hon. Gentleman comes to assess the savings or otherwise in the number of civil servants, will he take into account the fact that a value added tax would enable us to abolish the Selective Employment Tax?
§ Mr. DiamondIt does not follow that what one does about one tax necessarily leads to ability to deal with another.