HC Deb 07 May 1928 vol 217 cc22-4
44. Lieut.-Commander KENWORTHY

asked the Chancellor of the Exchequer whether he has any estimate of the amount of tax already collected on paraffin and other lamp oils before the tax was abandoned; what happens to this money; whether retailers and wholesalers, respectively, are expected to return the extra money paid by customers; and whether he has received any assurances from the principal oil companies concerned that the purchasers will be reimbursed?

The FINANCIAL SECRETARY to the TREASURY (Mr. Arthur Michael Samuel)

No tax had in fact been collected by the Exchequer on kerosene in the period between the 24th April and 1st May. But directions have been given for the discharge of any security, whether given by way of bond or deposit of cash, which had been taken by the Customs and Excise Department for payment of duty in respect of kerosene on the Finance Bill becoming law. This disposes of the matter so far as the responsibility of the Treasury is concerned. The hon. and gallant Member has no doubt observed in the Press that the leading oil companies have announced the reduction of the wholesale prices of kerosene by 4d. a gallon as from the 2nd May. They have further stated that, while they do not control the retail price of kerosene, they are making arrangements to refund to wholesale buyers the 4d. per gallon tax included in wholesale kerosene prices since the introduction of the tax. It is, therefore, reasonable to suppose that, as a rule, the refund will reach purchasers who paid an increased price during the week in question.

Lieut.-Commander KENWORTHY

Has the hon. Gentleman had any communication with the wholesale companies affected, in order to get from them some assurance that their retail customers will refund the money to their customers Are any steps being taken through the wholesale companies, which is probably the only way in which it can be done, to see that the ordinary householder is not deprived of this reimbursement?

Mr. SAMUEL

I will read the gist of my reply again: The wholesale companies say they are making arrangements to refund to wholesale buyers the 4d. per gallon tax.

Lieut.-Commander KENWORTHY

But that does not affect the ordinary private customer. Is anything being done to help him to get his money back?

Mr. SAMUEL

Nothing can be done by us. But if the customer goes into the shop where he has made the purchase and asks for a refund of tax, every respectable shopkeeper, as a matter of honesty, quite apart from his desire not to lose his customer's good will, will without doubt refund the tax money, as the shopkeeper will not be called upon to pay the tax himself.

Lieut.-Colonel ACLAND-TROYTE

Is my hon. Friend aware that in many cases, in most country districts, the money has already been refunded to the purchaser?

Mr. SAMUEL

That is what I should expect.