HC Deb 06 June 1939 vol 348 cc206-7
47. Mr. Lipson

asked the Chancellor of the Exchequer what he estimates will be the loss to the revenue from decline in National Defence Contributions and Income Tax payments from dealers in second-hand motor cars the capital value of whose motor cars has been reduced by £3,000,000 in consequence of the proposal to raise the horse-power tax to 25s.

Sir J. Simon

The loss which the hon. Member anticipates is a hypothetical one, based upon an assumption which I am unable to accept.

Mr. Lipson

Did not the right hon. Gentleman take this factor into consideration in making his proposals, and is he able to tell the House what he estimates will be the loss as a result of it?

Sir J. Simon

I assure the hon. Member that all relevant considerations were taken into account in estimating the yield of the tax. It is not infrequently the case that, when a new tax is first disclosed, there is in certain quarters a fear that loss will be incurred, but that fear is generally exaggerated.

Forward to