MOTOR VEHICLE TAXATION (Hansard, 24 May 1973)

§ Q3. Mr. Molloy
asked the Prime Minister if he will transfer responsibility for the taxing of motor vehicles to the Treasury.

§ The Prime Minister
The Treasury is already responsible for the level of motor vehicle taxation. The Department of the Environment is responsible for collection of the vehicle excise duty. I have no plans to change this arrangement.

§ Mr. Molloy
That being so, those Departments are responsible for not doing anything to try to arrest the present evasion of this tax. Is the right hon. Gentleman aware that not merely is a loss of revenue involved, with annoyance to the ordinary honest citizen and the bringing of the law into disrepute, but that the police and the taxing authorities have told me that there is need to reform the association that exists between them, so that this evasion can be successfully stopped? Will the right hon. Gentleman be prepared at least to consider the evidence 660 available and see whether he can recommend some sort of conference between the taxing authorities and the police to bring this situation to an end?

§ The Prime Minister
I am at one with the hon. Gentleman in wishing to stop evasion of this kind, but he was told by my hon. Friend recently that this is a problem particularly of London—in which the hon. Gentleman is concerned —and that 150 extra staff are being recruited in order to deal with the problem of evasion. When the process of moving licensing to the new computer at Swansea has been completed next year, it will be possible to have a much more rapid follow-up of cases of evasion of licensing.

§ Mr. Sydney Chapman
Will my right hon. Friend say whether the Government are considering abolishing the road fund licence and raising the revenue lost by increasing the excise duty on petrol? Is my right hon. Friend aware that, if this were done, quite apart from dealing with evasion it would mean that people would be dissuaded from making unnecessary journeys?

§ The Prime Minister
I know that this proposition has been put forward from time to time and has been examined. It is not the Government's intention to do this.

§ Mr. George Cunningham
When the Prime Minister is considering tax evasion, will he also ascertain why Ministers do not pay tax on the free houses with which they are supplied?

§ The Prime Minister
I do not think that has anything to do with motor vehicles.