HL Deb 04 March 1937 vol 104 cc523-4

My Lords, I beg to move that this Order be approved. Its effect is merely to enable proceedings in connection with taxation which are in progress at the time of separation to be completed. For example, at the time of separation there may be refunds of Income Tax due to someone, or there may be arrears of Income Tax due from someone, and the effect of this Order is to provide that both the refunds and the arrears shall be due as if separation had not taken place. The two Governments between them have arranged for the division both of the assets and of the liabilities in these circumstances. The noble Lord, Lord Lamington, earlier asked me a question which of course is very much outside this actual Order, but in reply I would say that the separation of Aden from India will not, so far as we can foresee, redound to the disadvantage of Aden. At the time when this matter was considered by the Joint Select Committee, His Majesty's Government assured that Committee that, unless unforeseen economic conditions arose, Aden would be retained as a free port, that the standard of administration in Aden would be retained at its present level, and that—again unless unforeseen economic conditions arose—the level of taxation would remain also at its present level. I hope that will reassure the noble Lord. He may, I think, rest assured that Aden certainly will not suffer as a result of the separation from India.


There was the question I asked about the taxation on the salt.


I do not quite follow the noble Lord. As the noble Lord knows, there is an Excise Duty on salt levied in India, and no doubt a corresponding Customs Duty on salt imported from other parts of the world, and that condition will be maintained.

Moved, That the Draft Order, as presented to Parliament and reported from the India and Burma Orders Committee on Thursday last, be approved.—(The Marquess of Zetland.)

On Question, Motion agreed to.