§ 59. Mr. A. R. W. Low
asked the Chancellor of the Exchequer whether he will ensure that 100 per cent. relief against double taxation is given to all residents in the United Kingdom who are in receipt of pensions from the Government of India in respect of former service with the Government of undivided India or any of the provincial Governments.
§ The Financial Secretary to the Treasury (Mr. Douglas Jay)
The allowance in full of Indian tax against United Kingdom tax in all cases would require an alteration of the law. As I explained in answer to a Question from the hon. and gallant Member for New Forest (Colonel Crosthwaite-Eyre) on Tuesday, 13th March, the existing arrangements will be adequate to relieve most pensioners from any burden of double taxation.
§ Mr. Low
Will the Government make sure that these pensioners are treated fairly in all cases? Ought he not to see that there is an alteration in the law? Does he appreciate that while there is some doubt about this matter, and complication, as he will no doubt agree, it means extra cost to those who have not the money to pay this extra amount of taxation?
§ Mr. Jay
I agree that the position is not fully satisfactory. Difficulty arises owing to the unwillingness of the Indian Government to make a double taxation 2584 agreement. We did a good deal by unilateral relief last year, but we think that the complete solution is to make such an agreement with the Indian Government.
§ Sir J. Mellor
Did not the Minister guarantee that these persons would receive their pensions in full?