HC Deb 05 April 1951 vol 486 cc353-4
8. Mr. A. R. W. Low

asked the Secretary of State for Commonwealth Relations whether he has a further statement to make concerning the recent decision of the Government of India about taxation of pensions paid by them to residents in the United Kingdom.

The Secretary of State for Commonwealth Relations (Mr. Gordon-Walker)

No, Sir. Discussions are still proceeding with the Indian Government about the administrative arrangements for the collection of Indian Income Tax on these pensions.

Mr. Low

Is the right hon. Gentleman not aware that there is only a very short time left before this decision begins to operate, to the disadvantage of the pensioners? Will he do all he can to expedite an agreement which will result in no hardship being caused to the pensioners?

Mr. Gordon-Walker

Yes, Sir, I am aware of the great shortage of time, and I have already instructed our High Commissioner in New Delhi to make representations at the highest levels to the Indian Government. This has been and is being done.

Colonel Crosthwaite-Eyre

How can the Secretary of State give this answer when the Treasury have already said that no hardship will be incurred by the pensioners? Is he aware that under Indian tax law at the moment 5s. in the pound, irrespective of the amount, has to be paid? How does he justify his present answer from that Box and reconcile it with what the Treasury have already said?

Mr. Gordon-Walker

The Question put to me has nothing about hardship in it. I am, of course, aware of the proposals made by the Indian Government, but I think it would be wise not to go into detail about it while we are having these urgent talks with them.

Colonel Crosthwaite-Eyre

Does the Secretary of State say that the answer given by the Treasury is still correct—that no hardship will accrue to these pensioners?

Mr. Gordon-Walker

I think the less said while I am having these negotiations with the Indian Government the better.