§ 29. Mr. Leatherasked the Chancellor of the Exchequer if he will have a study made, and information published, of the effect on British industry of abolishing Profits Tax and substituting a turnover tax on the German model, details of which have been sent to him by the hon. Member for Somerset, North, designed to yield approximately the same amount of revenue.
§ Sir E. BoyleI will consider my hon. Friend's suggestion.
§ Mr. LeatherI thank my hon. Friend for that assurance. Would he not agree that our present direct taxation system, on both companies and individuals, is primarily a tax on work and that the more successfully one works the more one is taxed? There are prima facie grounds for believing that other countries manage to raise their revenue in ways which are less predatory on incentive. We are handicapped in making comparative studies until such time as the Treasury will give some facts and figures.
§ Sir E. BoyleIt would not be easy to answer that supplementary question within the confines of a Parliamentary answer. This week it would be harder than ever, and I must ask my hon. Friend to accept my original Answer.