HC Deb 05 April 1922 vol 152 cc2284-6

In case of the creation and issue of capital stock there shall be kept, either at the office of the Secretary of State in London, or at the Bank of England, books wherein entries may be made of the said capital stock, and wherein assignments or transfers of the same, or any part thereof, may be entered and registered, and may be signed by the parties making such assignments or transfers, or, if such parties be absent, by his, her, or their attorney or attorneys thereunto lawfully authorised by writing under his, her, or their hands and seals, to be attested by two or more credible witnesses; and in such case the person or persons to whom such transfer or transfers shall be made may respectively underwrite his, her, or their acceptance thereof; and no stamp duties whatsoever shall be charged on the said transfers or any of them.

Nothing in this Section shall affect the provisions of Section six of the Government of India Act, 1916, with respect to the transfer of India Stock by deed.

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Mr. A. M. SAMUEL

I asked a question of the Government last night, perhaps a rather silly question, but one which ought to be answered. The Clause says: No stamp duty whatsoever shall be charged on the said transfers or any of them. At the present moment there is no transfer stamp duty payable upon British War Loans, India stock, Consols, and suchlike inscribed stocks, but in the case of this East India Loans Bill it might be said that it will not be payable. Why should the Indian Government any more than any other Colonial Government or municipal home corporation be allowed to go free in this matter? When loans are raised by the British Municipal Corporations or Colonial Governments, borrowers compound with the British Revenue, by paying a lump sum to obviate the transfer stamp duty being paid on each transfer after issue. Is that not so?

Sir F. BANBURY

My recollection is that municipalities which do not wish to pay stamp duty on the ordinary transfer of stock compound with the Government, in order that the stock may be free.

Mr. SAMUEL

That is what I said.

Sir F. BANBURY

But this is something like a 50 years' arrangement. The Indian Government loans have always been free of stamp duty.

Mr. SAMUEL

The Commonwealth of Australasia and the Colonies pay compounded stamp duty. They do not get off scot free. I do not see why an exception should be made in the case of Indian—if my argument is well founded.

Earl WINTERTON

I shall answer the hon. Gentleman in the same way as the right hon. Gentleman the Member for the City (Sir F. Banbury), that under a long-standing Statute no duty is paid in connection with this or other issues by the Government of India. That has always been the custom.

Mr. SAMUEL

I make my protest now, and say that it should not be so.

Question put, and agreed to.

Clauses 7 (Nominal amount of securities to be issued), 8 (Application of enactments), 9 (Saving) and 10 (Provisions to Members of the House of Commons) ordered to stand part of the Bill.

Bill reported, without Amendment; to be read the Third time To-morrow.