§ 56. Mr. Petherickasked the Chancellor of the Exchequer in what way Government contractors who are paying excess profits tax and whose acumen and efficiency result in lowered costs are permitted to share with the State the financial benefits of their successful efforts.
§ Sir J. AndersonIf my hon. Friend's suggestion is that some special taxation relief should be granted to efficient businesses, I am afraid that that would be quite impracticable. I would point out, however, that the payment of Excess Profits Tax at 100 per cent. is subject to the allowance in due course of the Excess Profits Tax Post-war Credit of 20 per cent. of the tax paid at that rate, while Government contract policy is designed wherever practicable to give higher rates of profit to the more efficient contractors.
§ Mr. Austin HopkinsonIs it not a fact that the acumen and efficiency of many Government contractors enable them to avoid paying Excess Profits Tax?
§ Sir H. WilliamsIs my right hon. Friend aware that up to now no firm has taken into its account as a credit the 20 per cent. to which he refers and that it has been regarded as a free sum of money with which firms can do anything?
§ Sir J. AndersonA definite assurance has been given.