HC Deb 21 November 1949 vol 470 cc17-8
31. Mr. Amory

asked the Minister of Transport if he is aware that an agricultural tractor with a transport box attached capable of carrying a maximum load of 5 cwts. is liable for tax at £12 per year instead of the usual rate of 5s.; and if he will remove this anomaly in the interests of efficient food production.

35. Brigadier Medlicott

asked the Minister of Transport if he will remove the anomaly whereby agricultural tractors with a transport box capable of carrying a maximum load of 5 cwts. have to bear tax at the rate of £12 per annum instead of the normal rate of 5s. per annum.

Mr. Barnes

The rates of duty are prescribed by the Finance Acts, which distinguish between vehicles constructed and used only for haulage and those constructed and used for carrying goods. If a tractor is fitted with some form of goods-carrying body, it is taxed at the appropriate rate for a goods vehicle and I do not propose to disturb this position. In the case quoted, the rate of £12 payable by farmers compares with £20 that general users pay.

Mr. Amory

Does the right hon. Gentleman agree that the anomaly in this case consists of the fact that if this small box is attached to the tractor it apparently attracts a duty of £12, but if it is in the form of a trailer which is capable of carrying six or 10 times as much, under the present arrangement it only attracts a duty of 5s.? Furthermore, does the right hon. Gentleman feel that as more and more tractors are used primarily on the farms, and therefore they are productive equipment, there is a good case for reconsidering the whole question of taxation?

Mr. Barnes

I agree that there is some anomaly; representations have been made by the National Farmers' Union on this matter, and they are being examined.

Mr. Baldwin

In making a comparison between the £12 paid by farmers compared with £20, I think, paid by the hauliers, is the right hon. Gentleman not aware that the difference of mileage done by the farm tractor compared with road haulage is very considerable and is not represented by the difference between £12 and £20?

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