HC Deb 29 July 1937 vol 326 cc3311-2
76. Mr. R. Acland

asked the Chancellor of the Exchequer what is the loss to the revenue due to the fact that alcohol used for methylation for power purposes is not liable for Excise duty?

Sir J. Simon

The yield of a duty on power alcohol at the same rate as petrol would amount, at the present rate of consumption, to a little over £100,000 a year.

77. Mr. Acland

asked the Chancellor of the Exchequer the amount of alcohol freed from excise duty for methylation for power purposes during the first six months of this year, and the corresponding figures for 1935 and 1936; and whether he will state why this alcohol, a large proportion of which is obtained from imported molasses, is not liable to duty?

Sir J. Simon

The [...]antity of alcohol made into power methylated spirits during the first six months of 1937 was 4,030,000 proof gallons; the corresponding figures for 1935 and 1936 were 708,000 and 1,223,000 proof gallons; with regard to the last part of the question, it has not so far been considered. that the scale of consumption made it necessary to tax alcohol as a substitute for petrol.

Mr. Acland

As this activity is so clearly growing, will the right hon. Gentleman consider whether it should not be subject to a tax in the Budget next year?

Sir J. Simon

I am, of course, ready to consider the matter.