§ 21. Mr. Madelasked the Chancellor of the Exchequer what plans he has for the special 10 per cent. car tax announced in his last Budget; and if he will make a statement.
§ Mr. HigginsA general guide to car tax procedure was issued in September by the Customs and Excise to car manufacturers and commercial importers and arrangements for the introduction of the tax on 1st April are going steadily ahead.
§ Mr. MadelWhen the announcement of this tax was made last April the Chancellor of the Exchequer promised chat he would keep it under constant review. As the costs of materials for the motor industry have risen since April, and as the highest level of demand for cars is essential to full employment in the motor industry, does my hon. Friend feel that 10 per cent. is too high?
§ Mr. HigginsI have noted my hon. Friend's suggestion.
§ Mr. LiptonWhy not abolish altogether the car tax and simplify the procedure by increasing the price of petrol?
§ Mr. HigginsI have noted the hon. Gentleman's suggestion with some interest, but the car tax was debated at considerable length in the Finance Bill debates and is now incorporated in the Finance Act.