HC Deb 10 November 1938 vol 341 cc298-9
65. Mr. Pilkington

asked the Chancellor of the Exchequer whether he will consider abandoning the principle of taxing motor cars on their horse power in view of the heavy handicap this places on manufacturers in competing with foreign types?

Sir J. Simon

I cannot see my way to abandoning the principle of taxing motor cars on their horse power, but I would remind my hon. Friend that the tax was reduced as from 1st January, 1935, by 25 per cent.

Mr. Pilkington

Is not my right hon. Friend aware of the very strong tendency of buyers of high-powered engines to go to America instead of to this country, and is not this progressive tax on the horse power a reason for it?