HC Deb 16 December 1953 vol 522 cc360-2
28. Mr. Hale

asked the Secretary of State for the Colonies what would be the estimated increase in the revenue of Kenya if income tax and surtax were levied at rates equivalent to those now levied in Great Britain.

Mr. Lyttelton

In Kenya income tax is assessed on a sliding scale. At certain points the rate of tax rises with each £1 of chargeable income. The information sought could, therefore, not be obtained without assessing each individual income in Kenya at U.K. rates, and I do not feel I can ask the local Administration to undertake so prodigious a calculation.

Mr. Hale

Is the right hon. Gentleman aware that every Chancellor of the Exchequer, when he introduces his Budget, has to make precisely similar calculations, precisely similar estimates? Some of them, admittedly, have proved exceedingly inaccurate, as in the case of his right hon. Friend a couple of years ago. The right hon. Gentleman gave me some specific figures a week or two ago which showed that the rate of income tax and surtax on high incomes in Kenya is about 50 or 60 per cent. less than in this country.

Mr. Lyttelton

The hon. Member is entirely at sea again on this matter. Kenya income tax law is not comparable with that obtaining in this country. If the hon. Gentleman had asked me to compare the rates of tax on various levels of income I could have given him an answer. What I cannot say is how much the revenue of Kenya would rise if the United Kingdom rate of tax were applied. That would mean a calculation on every single income in the Colony.

Mr. Hale

The specific Question which I put to the right hon. Gentleman referred to a specific income in Kenya. I asked him what was the total tax payable in income tax and surtax in Kenya. He will find the figures, as given by him to me, whether they were accurate or not, in Hansard. Therefore, these nautical similes, which come rather from the use of battleships, should not be used.

Mr. Lytteltons

The hon. Member is now referring to things which have nothing to do with the Question which he has put on the Paper. If he had required tables comparing the tax levied as a definite payment upon income I could have given him that. What I cannot give him is what would happen to the revenue of Kenya if the United Kingdom rate of tax was applied throughout the income range because that would mean an assessment of every single tax return in Kenya.

Mr. Hale

In view of the fact that the right hon. Gentleman is now saying that he is to lend money to Kenya without finding what contribution they can make, I give notice that I shall raise this matter on the Adjournment.

50. Mr. Beswick

asked the Secretary of State for the Colonies the approximate liabilities of married men without family in Kenya with incomes of £500, £1,000 and £5,000 a year, respectively; and what are the approximate tax liabilities of Africans with incomes of £100 a year.

Mr. Lyttelton

£16 15s., £70 13s., and £1,566 2s., respectively. Africans pay 6s. to 23s. according to district of residence.

Mr. Beswick

Would not the tax liabilities of Europeans in the higher income groups appear to be very small compared with those of people in this country, who, it seems, are making a substantial contribution to the expenses in Kenya?

Mr. Lyttelton

The liability for tax in the higher income groups is about three-quarters of what it is in this country. The hon. Member should also remember the importance of attracting capital into the Colony, and that is one of the reasons.