HC Deb 26 April 1950 vol 474 cc934-5
8. Mr. Gammans

asked the Secretary of State for the Colonies if he will make a statement on the dissatisfaction which has arisen in Gibraltar regarding the imposition of new taxation.

25. Mr. Hamilton

asked the Secretary of State for the Colonies if he will make a statement on the opposition to the proposed profits tax in Gibraltar.

Mr. J. Griffiths

It became clear last year that Gibraltar's revenues needed strengthening, and in July the Gibraltar Government published proposals for a modest tax assessed on trading profits to be paid by local trades and businesses. These proposals met with some criticism in the Colony, where, hitherto, direct taxation has been limited to an estate duty. The local Chamber of Commerce put forward proposals for an alternative form of trades tax but their proposals were, in the view of the Gibraltar Government, both inflexible and unfair, in that they would have placed the greater proportionate burden on the smaller concerns. It was, therefore, decided to go forward with the original scheme. The Gibraltar Government has shown great patience in this matter, and I am fully satisfied that the decision to go forward is right.

Mr. Gammans

Is it true that a delegation from Gibraltar is coming to this country to see the right hon. Gentleman about this matter?

Mr. Griffiths

Not to my knowledge.

Miss Horsbrugh

Would the right hon. Gentleman say whether people from the Chamber of Commerce have already been here, and whether he will consider postponing this taxation until the Legislative Council is set up?

Mr. Griffiths

These proposals were put forward six months ago, and I am satisfied that they cannot be postponed until the Legislative Council is set up.

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