§ 51. Mr. Stokesasked the Chancellor of the Exchequer what special steps he proposes to take to tax the war profits of those people who, between 18th August and 6th October, made an average extra profit of £370,000 per week on Treasury Bills?
§ Sir J. SimonThe discount receivable on Treasury Bills is chargeable to Income Tax, and where it is received by a concern whose trade or business is of such a character that income from investments falls to be treated as a trading receipt, it forms part of the profit of the concern for the purposes of the National Defence Contribution and the Excess Profits Tax.
§ Mr. StokesIn view of the repeated statements made by the Prime Minister that there will be no profiteering in this war, does the Chancellor really think that it is fair to allow moneylenders to get away with three or four times the profit which they did immediately before the outbreak of war?
§ Sir J. SimonThe considerations which govern the Bank rate are considerations which I stated very clearly to the House in a recent Debate. I would refer the hon. Member to what I then said.
§ Mr. Craven-EllisCan my right hon. friend say whether transactions out of which such profits arise will come within the scope of the Prices of Goods Bill?
§ Sir J. SimonI would not have thought that they were included under the heading of "goods."
§ Sir Herbert WilliamsHas not the recent rate of discount on Treasury Bills been substantially lower than that which prevailed when the last Labour Government was in office?