2. Mr. Edward M. Taylorasked the Secretary of State for Commonwealth Relations what information he has on the effective percentage rate of taxation levied on British companies in respect of their operations in Ghana.
§ The Minister of State, Commonwealth Relations Office (Mr. Cledwyn Hughes)The normal company tax in Ghana is 9s. in the Ghana £ on profits. In addition, profits which are remitted to Britain 1367 pay a further tax of 4s. in the Ghana £, making the total tax 13s., or 65 per cent. Many British companies are also liable to a further 10 per cent. charge on their profits in respect of excess profits tax.
Mr. TaylorThis is a most unsatisfactory state of affairs. What steps does the hon. Gentleman propose to take to remedy it? Does he appreciate that there are several Commonwealth countries now subjecting British firms to unreasonable rates of taxation and discouraging further investment? Will he take steps to have this whole matter discussed at the next Commonwealth Prime Ministers' Conference?
§ Mr. HughesNaturally, this is a situation which Her Majesty's Government have to take into account. My right hon. Friend and the High Commissioner in Accra are fully alive to the need to support the interests of the British community in Ghana, and we are always ready to assist them by presenting major points of grievance to the Ghanaian authorities.
§ Mr. DellIs there any difference between the level of taxation on British firms and taxation on firms of other nationalities, and has my hon. Friend any knowledge of disinvestment in Ghana by British firms as a result of these levels of taxation?
§ Mr. HughesFirms of all nationalities are treated similarly. As regards disinvestment, the position is not an incentive to British firms or firms of any other nationality, but, as I said, Her Majesty's Government keep the siuation constantly in mind.
§ 7. Mr. Evelyn Kingasked the Secretary of State for Commonwealth Relations whether he will now ban the sale of warships to Ghana.
§ Mr. BottomleyNo, Sir.
§ Mr. KingI congratulate the right hon. Gentleman on that very sensible answer. May we assume also that this does not imply any condonation of any breach of human rights which may have taken place in that country? Can it, therefore, be further assumed that British exports will not be diminished by means of moral judgments on any country, whether it be 1368 Spain, Ghana, South Africa, Russia or anywhere else?
§ Mr. BottomleyTrade should be encouraged by all. We want to see trade peacefully developed so that it can bring great benefit to all countries.
§ Mr. LongdenI agree with the right hon. Gentleman's reply, but is he aware that 13 other African States have expressed strong condemnation of what is going on in Ghana and also of the subversive activities by Ghana in other African States? Is the Commonwealth doing anything about it?
§ Mr. BottomleyI suggest that that has nothing to do with Question on the Order Paper.