HC Deb 14 April 1959 vol 603 cc802-3
33. Mr. Ernest Davies

asked the Chancellor of the Exchequer the additional annual cost to the Exchequer of amendment of Section 3 of the Vehicle Excise Act, 1949, so as to provide that the maximum duty chargeable on public service vehicles was the same as private cars. namely £12 10s., instead of the amended charges proposed in his Budget statement.

Mr Amory

About £1 million more than my Budget proposal. If a refund were given on current licences, the total extra cost in 1959–60 would be about £1¾ million.

Mr Davies

As the concession made cost £3½ million, would not this cost only an additional £1 million? Does not the right hon. Gentleman think it would be worth while to simplify the law in this respect, because there would be considerable economy in administrative costs if this system were introduced?

Mr Amory

I do not think so. Perhaps there will be an opportunity of discussing this question later on the Finance Bill.

34. Mr. Ernest Davies

asked the Chancellor of the Exchequer the estimated annual cost of remission of duty on diesel fuel used in public service vehicles.

Mr Amory

Twenty-six million pounds, but since relief from Hydrocarbon Oil Duty could not be limited to oil used for particular purposes, such remission would put in issue the entire duty, which is expected to yield £355 million this year.

Mr Davies

Why does the Chancellor say that there could not be a discriminatory tax of this sort in view of the fact that in the Budget he has exempted certain vehicles from duty on the oil which they consume, vehicles which do not normally operate on the road but operate elsewhere, so that there is discrimination already? Further, as this remission would cost only £26 million and he has remitted £36 million of beer tax, does he not consider that to help rural transport services which are steadily deteriorating would be of greater benefit to the community?

Mr Amory

There are two difficulties. First of all, there is the question here of discrimination between diesel oil and petrol and then the question of discrimination between passenger buses and other kinds of road haulage vehicles. Again, perhaps I may say, Mr. Speaker, that it is conceivable that we shall have an opportunity of discussing this question later.