50. Mr. McKieasked the Chancellor of the Exchequer how many persons have not yet received demand notes under the special contribution levy; and if he will give an assurance that such persons will not be charged interest at 2 per cent. on the amount due by them if the demand notes are not received by 1st January.
§ Sir S. CrippsNotices of assessment to special contribution have been issued in about 26,000 cases. The total number of individuals liable to contribution is estimated at about 125,000. Under Section 54, Finance Act, 1948, interest at 2 per cent. per annum from 1st January, 1949, to the date of payment is chargeable on all Contribution, whether assessed by 1st January, 1949, or not. Any contributor can, of course, pay in advance, and by doing so will to that extent save himself interest; payments made before 1st January, 1949, carry a discount of 2 per cent.
Mr. McKieIn view of the extreme reluctance with which the Chancellor said he had to impose this tax at all, and in view of the extreme difficulty officials are having with the assessments, will he not realise the great inconvenience to private individuals through having to make their own assessments and in view of this will lie not reconsider the whole matter?
§ Sir S. CrippsNo, Sir. The House voted on this and decided the issue in the course of the Finance Bill.
§ Captain CrowderIs the right hon. and learned Gentleman aware that these assessments are complicated and difficult, and would he agree that many 1023 accountants and banks find it impossible to get his staff to pay it the attention it requires? In these circumstances could he not see his way to postpone the payment of the interest anyhow until 31st March?
§ Sir S. CrippsThe payer will have the use of the money until such times as it is paid over.
§ Mr. StanleyCan the right hon. and learned Gentleman say why such a very small percentage of these demands has gone out?
§ Sir S. CrippsIt is not a very small percentage. It is 26,000 out of 125,000, which is the estimated number.
Mr. E. P. SmithCan the Chancellor assure the House that so long as the 2 per cent. interest is punctually paid, there will be no demand for the contribution itself?
§ Sir S. CrippsThe contribution is payable on 1st January.
§ Mr. Charles WilliamsHow can a person, who has to pay this tax, possibly know what he should pay if the Government do not know what the demand is?
§ Sir S. CrippsHe can do what a great many people do—make a good guess and pay it in advance.