§ 44. Mr. Ernest Daviesasked the Chancellor of the Exchequer if he will give an estimate of the amount of revenue from the present hydrocarbon oil duties receivable in a full year on the basis of the petrol ration applicable after 17th April and allowing for freedom from restriction on consumption of diesel oil for road transport applicable from 1st April; and what was the amount received during the last previous year free from rationing.
§ Mr. PowellOn the hypothesis mentioned in the first part of the Question, the revenue would be about £ 435 million; in regard to the second part, receipts from the hydrocarbon oil duties in the 12 months ended 30th November, 1956, amounted to £ 332 million.
§ Mr. DaviesDoes that not show that the Treasury is making a profit from the increased tax and does it not justify the claim, made from this side of the House, that there is no reason for continuing this tax but that it is a burden which is being imposed on the public?
§ Mr. PowellIt shows nothing of the kind, because the hypothesis in the first part of the hon. Member's Question is most unlikely to be fulfilled.
§ Mr. DaviesSince consumption is running at a rate only 3 per cent, less than last year and since for the bus and coach companies, as well as road haulage. 1338 rationing has virtually ceased and consumption is at the pre-rationing level, how can it be said that the £ 100 million difference is not an unnecessary burden?
§ Mr. PowellThe £ 100 million difference exists only on the hypothesis in the hon. Member's Question, which is a hypothesis as to the future. The revenue from this tax in the current year is such that, as I have already told the House, the Budget estimate will barely be realised.