§ 12. Mr. David Howellasked the Chancellor of the Exchequer what proposal he has received for special tax privileges for exporters wishing to invest in and build up overseas sales organisations.
§ Mr. TaverneNone, Sir.
§ Mr. HowellWould the hon. and learned Gentleman nevertheless accept that it is in building up strong wholesale and distributing organisations in foreign markets that our rivals have had their most striking successes? When he and his colleagues next turn their minds to export incentives, as they presumably will before long, can they provide particular encouragement in this respect?
§ Mr. TaverneThis is, of course, a very important matter. However, one must have regard to a number of factors. One is the position under our international obligations, such as G.A.T.T. and E.F.T.A. Another is the fact that if there are subsidiaries abroad, they will not pay United Kingdom tax, while if there are branches abroad they receive considerable relief under double taxation agreements.