64. Mr. TREVELYAN THOMSONasked the Chancellor of the Exchequer what would be the equivalent profits tax required if levied on all trading profits to yield a return equal to the estimated receipts in the coming financial year from the Excess Profits Duty and Corporation Profits Tax combined; and whether he is aware that such a tax, if levied on a graduated basis, whilst yielding the same revenue, would less injuriously affect ex-service men who are attempting to reestablish themselves in civil life than the proposed Excess Profits Tax?
§ Mr. BALDWINA tax of the character suggested by the hon. Member could not be productive of any appreciable amount of revenue in the course of the current financial year. It is estimated, however, that in order to produce an amount equal to the yield in a full year of the Excess Profits Duty and Corporation Profits Tax at the rates at present proposed, the tax suggested would have to be levied at an average rate of approximately 5s. 6d. in the £. The hon. Member will recall that I undertook yesterday, on behalf of my right hon. Friend the Chancellor of the Exchequer, that the question of granting further relief to small businesses, in connection with the proposed increase in the rate of the Excess Profits Duty, should be considered before the Committee Stage of the Finance Bill.