§ 31. Mr. Whitakerasked the Chancellor of the Exchequer whether he will consider a scheme for taxing and insuring motor vehicles by means of a tax on petrol sales; and what would be the approximate administrative costs saved by altering the present method of taxation in this way.
§ Mr. DiamondThe administrative savings from substituting petrol duty for vehicle excise duty cannot be accurately estimated, partly because the registration procedure would have to be retained for 243 control purposes. My right hon. Friend has no plans for effecting vehicle insurance through the tax system, which would require a very extensive administrative machinery.
§ Mr. WhitakerWould not my right hon. Friend agree, though, that this would prevent evasion, would save the time of civil servants and would fairly allocate the burden in proportion to those who enjoy motoring? Therefore, will he urgently reconsider this policy, which seems to have overwhelming advantages?
§ Mr. DiamondI am not sure to what my hon. Friend is referring. The advantages do not exist in either part of the Question which I have answered.
Mr. Gresham CookeWould the Chief Secretary inform his hon. Friend the Member for Hampstead (Mr. Whitaker) that there is already a petrol sales tax of 3s. 3d. a gallon and that the British public would not accept a further tax, even from a Socialist Government?
§ Mr. Arthur LewisIs my right hon. Friend aware that the present system is breaking down because hundreds of thousands of vehicle owners deliberately and consistently avoid paying the Road Fund tax and no attempts are being made to enforce it? Therefore, my right hon. Friend should either ensure that the tax is paid or drop it altogether.
§ Mr. DiamondNo. Reports and suggestions of the duty being evaded to this extent are very much exaggerated. Routine reports suggest that unlicensed use amounts to approximately 1 per cent.