HC Deb 01 May 1958 vol 587 cc563-4
27. Mr. Beswick

asked 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. Simon

An increase of about £1.3 million.

Mr. Beswick

Will 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 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. Simon

There 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. Jay

Is 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. Simon

Certain 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. Beswick

Will the Financial Secretary be good enough to give an assurance that he will receive a deputation to discuss this matter in rather closer detail?

Mr. Simon

Gladly.