§ 27. Mr. Beswickasked the Chancellor of the Exchequer what is his estimate of the difference in the Profits Tax yield from co-operative societies as the result of the increase in tax rate payable and the allowance now made for interest on share capital.
§ Mr. BeswickWill the Financial Secretary recall that the effect on industry generally was a reduction of £16 million and that he himself said that the effect on building societies would be a reduction of about £1 million? Can he say whether it was the intention of the Chancellor of the Exchequer, when he made these 564 changes, to single out the Co-operative movement as being the only form of activity liable to an increased tax liability as a result of recent changes?
§ Mr. SimonThere is no question of singling out the Co-operative movement. The Profits Tax is a tax on the profits of corporate bodies and, as such, it ought to apply to all such bodies alike. That was the recommendation the Royal Commission on Taxation.
§ Mr. JayIs it the policy of the Government that there should be an increase in the taxation on the profits of co-operative societies at the present time? If so, what is the justification for it?
§ Mr. SimonCertain corporate bodies under the re-organisation of taxes recommended by the Royal Commission will, in the result, have to pay more tax and some will have to pay less.
§ Mr. BeswickWill the Financial Secretary be good enough to give an assurance that he will receive a deputation to discuss this matter in rather closer detail?