HC Deb 27 February 1918 vol 103 cc1372-3
12. Colonel YATE

asked the Undersecretary of State for War for what reason directors, deputy - directors, and deputy-assistant-directors of the Army Ordnance Department, the Royal Army Medical Corps, and the Inland Water Transport employed in Mesopotamia are given Indian pay and are not charged Income Tax, while directors, deputy-directors, and deputy-assistant-directors of the Army Service Corps similarly employed in Mesopotamia are only given British pay and are being charged Income Tax in addition?

The FINANCIAL SECRETARY to the WAR OFFICE (Mr. Forster)

The facts are not quite as stated. The general rule is that the pay of Staff appointments in Mesopotamia (other than those included in the formations of Indian Divisions and Brigades) is at British rates, while appointments on regimental pay carry Indian rates of pay. This is subject to a reservation in favour of Staff officers who are already in receipt of the more favourable Indian rates, or who have definite rights to such rates. As regards Income Tax, military officers in Mesopotamia in receipt of pay from British funds are liable to British Income Tax on their pay. Officers who are paid out of Indian funds do not, of course, fall within the scope of the British Income Tax, and I understand are not chargeable to Indian Income Tax as being stationed outside the limits of India.

Colonel YATE

As the answer to my question is rather complicated, is it the fact that the Army Service Corps are paid the British rates of pay and the others at the Indian rates of pay?

Mr. FORSTER

Yes, they are. As I have already explained, there are differences. Some are paid at British rates and the others at Indian rates.

Colonel YATE

Will the right hon. Gentleman put them all on the Indian rates and be done with it?

Mr. FORSTER

No, Sir; I am afraid I cannot. I wish I could. But this matter has been very carefully considered by the Army Council as a whole, and they came to the conclusion that there was no justification for putting those officers who are now drawing British rates on the Indian rates of pay.

Colonel YATE

May I ask why is there no justification?

Mr. FORSTER

If my hon. and gallant Friend regards the thing as anomalous I agree. But the whole thing arises from the fact that the Army in Mesopotamia is drawn from different quarters of the British Empire, and has different rates of pay. It appears to the Army Council that there is no more reason for putting Staff officers, drawing British rates of pay, on the Indian rates in Mesopotamia than there would be in Palestine or France.