§ 63. Sir Leonard Lyleasked the Financial Secretary to the Treasury whether he can make a statement on the working to date of the system of deduction of Income Tax from the wages of manual workers due to start on 1st January last?
§ The Financial Secretary to the Treasury (Captain Crookshank)The scheme for the deduction of Income Tax from salaries and wages has now been in operation for a full year, and has worked well. At the present moment some difficulty has arisen owing to the very large increase in the number of wage earners liable to tax for the current year, which has made it impossible, under existing conditions, to cover the whole field in time for all the deductions to start punctually on the 1st January, but it is expected that practically all cases will have been dealt with before the end of this month. There is no doubt that this method of paying their tax is proving a great convenience to employees in view of the present high rates of taxation, and there is ample evidence that employees as a whole prefer it to the old method of direct payment. I should like to take this opportunity of thanking employers for the ready manner in which they have accepted the duties laid on them by the scheme.
§ Sir L. LyleWill the Financial Secretary consider the simplification of procedure so that employees and employers may understand exactly where they are, as it is difficult for them to do so at the present time?
§ Captain CrookshankThat is another Question, but I think that all who do receive their tax demands understand very well what they are.
§ Sir L. LyleBut they do not understand the form.