§ 12. Sir HENRY CRAIKasked the Secretary of State for India whether the question of an Excess Profits Tax in India has been considered; and whether it is proposed to extend that tax to businesses in that country, where very large war profits have been realised?
§ Mr. MONTAGUIn March last year the Finance Minister discussed the question in paragraph 61 of his speech introducing the Financial Statement for 1917–18, and gave his reasons for preferring at that time to secure a portion of excess profits by means of a Super-tax, which was then imposed for the first time.
§ Sir H. CRAIKSince the declaration of the Finance Minister, has the Government of India had the matter again under consideration, seeing that there is a very strong feeling in India that these enormous profits ought to come under the same Income Tax as here?
§ Mr. MONTAGUThe hon. Gentleman will realise that our Excess Profits Tax is based on our incomes. The Income Tax law of India presents, I will not say insuperable, but very great difficulties for the imposition of a similar tax.