§ 40. Sir F. LOWE
asked the Chancellor of the Exchequer whether the Excess Profits Tax, sought to be imposed upon controlled firms under the Finance (No. 2) Bill, is in addition to or in substitution for the levy imposed upon them under the Munitions Act?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)
I would refer the hon. Member to Clause 43 of the Finance Bill (as amended in Committee) from which he will see that the Commissioners of Inland Revenue may treat any sums actually paid in respect of munitions exchequer payments which appear to them to be attributable to the same period and subject matter as that for which Excess Profits Duty is to be paid, as a payment on account of Excess Profits Duty.
§ Sir F. LOWE
Does that answer of the right hon. Gentleman mean that the Government will take 60 per cent. of the 20 per cent. of the excess profits which under the Munitions Act the controlled firms are allowed to retain, as well as the whole surplus profits over and above the 20 per cent? Would it not be fairer to impose 60 per cent. on the whole?