HL Deb 15 January 1964 vol 254 cc575-6

2.35 p.m.

LORD COLYTON

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government what representations they have made to the Government of Ghana in regard to the imposition by the latter of a tax of seven shillings in the pound on the pensions of non-resident ex-civil servants of Ghana.]

THE MINISTER OF STATE FOR COMMONWEALTH RELATIONS AND FOR THE COLONIES (THE DUKE OF DEVONSHIRE)

My Lords, the attention of the Government of Ghana has been drawn to the fact that this new tax on income received from Ghana by nonresidents of Ghana can impose a serious extra burden on overseas pensioners. Following these representations discussions are proceeding with the Ghana authorities with a view to affording relief to these pensioners.

LORD COLYTON

My Lords, while thanking my noble friend for his reply, may I ask him whether he is aware of the fact that this tax makes no provision whatever for personal, marriage or children's allowances; and that, in addi- tion, for the month of December, 14s. in the pound was charged to cover the months of November and December; and that, together with British income tax on this amount, this left very little indeed for the pensioners?

THE DUKE OF DEVONSHIRE

My Lords, I am glad that the point has been raised by my noble friend. As regards the 14s., that was due to the fact that the tax in December was back-dated to November 1 and therefore covered two months. From now on, it will be 7s. As regards allowances, this is one of the main points of the representations that we have made to the Ghana Government and it is under discussion now.

THE EARL OF LISTOWEL

My Lords, may I say that I am very glad that the Government are discussing this matter with the Ghana Government? May I ask the noble Duke whether he does not think that there might have been some misunderstanding about double taxation?

THE DUKE OF DEVONSHIRE

My Lords, while the discussions are going on it would not be helpful for me to go into the details of this, but I think it is fair to say that perhaps the Ghana authorities were not fully aware of the implications of this tax.

LORD COLYTON

My Lords, I am afraid that we are going to see this sort of thing arising in other places in future, and is not this really an argument for the British Government's taking over ultimate responsibility for the payment of full pensions of all ex-members of the Colonial or Oversea Service?

THE DUKE OF DEVONSHIRE

My Lords, with respect to my noble friend, I think that that is a different and far larger question. Perhaps my noble friend would wish to put down a Question to that effect.