§ 36. Mr. TINKERasked the Chancellor of the Exchequer the total amount of revenue derived from the taxation of sugar, tea, coffee and cocoa for the financial years 1927 and 1928; and what increase would have to be put on the Income Tax if the articles mentioned were relieved of taxation and the same borne by the Income Tax?
§ Mr. CHURCHILLThe total net revenue derived from the taxation of 556 sugar, tea, coffee and cocoa for the financial years ended 31st March, 1927 and 1928, was as follows:
These compare with a figure of £27,384,000 for 1924–25.
£ 1927 23,697,000 1928 23,424,000 The estimated produce per 1d. of the Income Tax is about £4,800,000. An increase of between 5d. and 6d. in the Income Tax would, therefore, be required to make good the loss of revenue if the duties on sugar, tea, coffee and cocoa were repealed.
§ Mr. TINKERIs the right hon. Gentleman considering the question of taking off these taxes and getting the money by means of direct taxation?
§ Mr. CHURCHILLI am considering all questions connected with both putting on and taking off taxes.
§ Mr. WARDLAW-MILNEIs it not the fact that in recent years the amount of revenue derived from direct taxation has increased enormously, at the expense of the amount derived by indirect taxation?
§ Commander OLIVER LOCKER-LAMPSONMight not an increase in the Income Tax lead ultimately to a decrease in the revenue?