§ 27. Sir F. Medlicottasked the Chancellor of the Exchequer what proposals he has under consideration for the abolition or modification of Schedule A tax; and if he will make a statement.
§ Mr. SimonI have no statement to make on this subject, but we may have an opportunity to discuss some aspects of it next week.
§ Sir F. MedlicottIs my hon. and learned Friend aware that the collection and payment of this tax, often in quite 592 small amounts, imposes a great burden upon taxpayers and their advisers and the Inland Revenue? Taking into account the cost of collection, is not it a fact that the net revenue could quite well be dispensed with?
§ Mr. SimonNo, Sir. It is true that the collection of any tax puts a burden on the taxpayer and, to some extent, on the Revenue. Nevertheless, the receipts from this tax certainly far outweigh the cost of collection.
§ Mr. WadeQuite apart from the complexities of the task, will the Minister take into account that the owner-occupier of a house is allowed no depreciation allowance, as opposed to a maintenance allowance, and, therefore, is at a disadvantage compared with many taxpayers who gain considerably from depreciation allowances on various assets?
§ Mr. SimonThis is a complex problem which was examined exhaustively by the Royal Commission. It would be wrong to isolate any single factor.