Motor Cars (Taxation) (Hansard, 25 April 1950)

§ 49. Mr. De la Bere
asked the Chancellor of the Exchequer whether, in the case of motor cars ten years old or over, some reduction in taxation can be granted, in view of the hardship to many of the less well-to-do people who are faced with a high rate of taxation at the present time.

§ Sir S. Cripps
No, Sir.

Mr. De la Bère
Does the Chancellor realise how very inequitable it is to make those people who are less well off and 777 cannot obtain new motor cars, in many cases pay double what has to be paid by others? Where is the justice?

§ Sir S. Cripps
No, Sir. I think it was explained at the time that the difference was very much affected by the fact that the person who buys the new motor car pays 33⅓ per cent. tax on the car and that that equalises the burden between the two.

Mr. De la Bère
Was not the explanation utterly inadequate?

§ Mr. Thornton-Kemsley
Has the Chancellor borne in mind that to keep these old cars on the road is in effect lessening the demand upon the motor industry for new cars, and will he look at the question from that viewpoint?

§ Sir S. Cripps
Certainly, and that is one of the reasons which enable them to export more.

Mr. De la Bère
It does not make sense.

§ 66. Mr. Gammans
asked the Chancellor of the Exchequer what is the estimated cost of reducing the licence charge to £10 in respect of all motor cars; and if he is prepared to make this reduction in view of the heavy and continuing cost of repairs and maintenance on old cars, and the fact that the duty on petrol has now been increased.

§ Sir S. Cripps
I regret that I cannot make this concession, which I estimate would cost £6 million in a full year.

§ Mr. Gammans
Is the Chancellor aware that there is quite a number of cars which still pay the higher rate of licence duties and which in fact also paid Purchase Tax, and does that not rather invalidate the argument he put to the House just now?

§ Sir S. Cripps
That would be for just a short period in the intervening stage between the two types of taxation, to which I take it the hon. Gentleman is referring. At the time, in order to avoid having three types of taxation, it was thought desirable to keep these in the former category.