§ MR. LOUGH (Islington, W.)I beg to ask Mr. Chancellor of the Exchequer whether, with a view of relieving the growing anxiety in commercial circles and preventing changes that may prove 37 unnecessary in methods of business, he can now state what changes he intends to make in the proposed increase of the stamp tax.
§ * THE CHANCELLOR OF THE EXCHEQUER (Sir M. HICKS BEACH,) Bristol, W.What I propose is this. As hon. Members are aware, the stamp duty on cheques is paid for, in the first instance, by the banker, and then charged by him to his customer's account. It is the practice in London, and also very largely in the country, when a customer sends his pass book to be made up, to return to him with the pass book the cheques which he has drawn. I propose that this shall always be done—and that then the customer, on forwarding to a collector of Inland Revenue, or presenting at the nearest Money Order Office the cheques which he has drawn under £2, shall be entitled to be paid the extra 1d. on all such cheques. The result will be to relieve all cheques under £2 of the new duty.
§ SIR F. DIXON-HARTLAND (Middlesex, Uxbridge)Will the right hon. Gentleman state whether the representatives of the Post Office or the customers will keep the cheques?
§ * SIR M. HICKS BEACHSome arrangement will have to be made for a check on postmasters, of course. I will consider that.
§ SIR HENRY FOWLER (Wolverhampton, E.)May I ask whether the bankers of London have recommended this extraordinary course?
§ * SIR M. HICKS BEACHI do not know why the right hon. Gentleman calls it an extraordinary proposal. It is not at all impracticable, I think. It is what is done at present with regard to income tax on premiums of insurance, only it will be done in a much easier and simpler way.
§ MR. BARTLEY (Islington, N.)Will any opportunity be given of discussing the salaries of the staff required at the different offices to carry this out?
§ * SIR M. HICKS BEACHThe present staff can perfectly well do it.