§ 61. Mr. Hugh Lawsonasked the Chancellor of the Exchequer if he is aware of anomalies in the incidence of Income Tax on taxable incomes between £110 and £133 per annum; if he has considered the proposals for removing these anomalies submitted to him by Messrs. Ford, Ayrton and Company, Limited, of Law Bentham; and if it is his intention to introduce provisions of this nature.
§ Sir J. AndersonThe proposals to which the hon. Member refers are directed to an alteration of the graduation of the tax by way of higher personal allowances for small incomes. This would involve an alteration of the Income Tax law in the Finance Act and is therefore a matter into which I cannot enter in advance of the Budget. It is possible that under the existing law the incidence of the tax might be modified by spreading the deduction and as indicated in reply to the hon. Member for Deptford (Mr. Green) on 16th January this matter is under consideration.
§ Mr. LawsonWill the Chancellor bear in mind that the present arrangements mean that tax is paid at the rate of 15s. in the £ in this range of income, and it is very important that some modification should be made at the earliest possible moment?
§ Sir J. AndersonI fully realise that disadvantage.