MR. NORTHCOTEasked the Secretary to the Treasury, If it is the case that Income Tax at the rate of 6d. in the £1 has been deducted from the salaries of permanent Civil Servants of the Crown for the quarter ending June 30th, notwithstanding the fact that the Supplementary Budget has not yet received the sanction of this House; and, if so, on what grounds this deduction has been made in the case of Civil Servants, whilst the Bank July Dividends bear a charge of only 5d. in the £1?
§ LORD FREDERICK CAVENDISHSir, the deduction of Income Tax from the Salaries of Civil Servants for the quarter ending June 30 has been made, in accordance with the provisions of Section 17 of the Customs and Inland Revenue Act, 1879, at the rate sanctioned by the Resolution of this House which was passed on the 11th of June last. The reason why the Bank July Dividends bear a charge of only 5d. in the pound is that the books of the Bank having been already made up, it would be extremely inconvenient, with so large a number of payments concerned, to require them to be re-adjusted to the new rate at so short a notice. The deduction in the next payment will be made at the rate of 7d.