§ 33. Mr. Nabarroasked the Chancellor of the Exchequer, in view of the inadequate level of exports this year and the adverse balance of payments' 1233 results, what further consideration, and with what result, he has given to incentive tax concessions to British exporters.
§ Mr. Selwyn LloydI am satisfied that it would not be desirable to introduce special tax concessions confined to exporters. I am considering the other aspects of this matter.
§ Mr. NabarroThe Question does not ask for special tax concessions unique only to exporters. Would not my right hon. and learned Friend agree that there is now established a very definite connection between our penal level of direct taxation and the inadequacies of our export efforts? What is he doing in this context to apply himself to that particular problem?
§ Mr. LloydThat is obviously an aspect of the matter which I must consider in connection with the coming Budget.
§ Mr. JayDoes the Chancellor believe that taxation has a major influence on exports, one way or the other?
§ Mr. NabarroOf course, it has.
§ Mr. GaitskellIs the right hon. and learned Gentleman aware that the German Government offers to German exporters certain tax advantages in their exports? Can he confirm whether this is so or not, and can he say whether he thinks that the present arrangements among different countries are fair and consistent with their obligations under G.A.T.T.?
§ Mr. LloydThis is a matter which I have had closely under attention. So far as the German Government are concerned, the only other concession is a drawback or withdrawal of turnover tax. In our case, there is a rebate of the Purchase Tax paid. I do not know of any direct incentives.