HC Deb 31 December 1916 vol 88 cc1628-9
86. Mr. PETO

asked the Chancellor of the Exchequer whether his attention has been called to the fact that the concession made to soldiers and sailors in the matter of Income Tax is in practice rendered entirely inoperative where the pay is under £160 per annum owing to the wording of Section 30, Sub-section (2) of the Finance Act of 1916, which provides that all deductions permissible shall be made primarily from the pay; and whether he will suspend the collection of Income Tax on this basis after 1st January next and consider the introduction of words in the next Finance Bill which will give practical effect to the intention of the House in this matter?


Since I replied to my hon. Friend yesterday I have found that this matter was fully discussed in connection with an Amendment moved by my hon. Friend to Clause 27 of the Finance (No. 2) Bill, 1916, and, as at present advised, I cannot undertake to introduce the legislation suggested.


Does not the result of the right hon. Gentleman's investigation show that the facts stated in my question are correct—that making the deduction primarily from the pay in effect places civilians and soldiers on the same footing?


I am told that that is not quite the case. But my hon. Friend will have the opportunity of raising the question on the Appropriation Bill.