§ Mr. SEARSasked the Chancellor of the Exchequer whether his attention has been called to the case of motor vehicle contractors who hold unexpired contracts with private customers to supply motor landaulettes, etc., and who under the terms of such contracts are unable to charge the amount of the petrol tax to their customers; and will he make a special provision whereby the customer and actual user of the petrol may be made to bear the tax, or otherwise give the benefit of the rebate in such cases as on commercial vehicles?
The same HON. MEMBERalso asked the Chancellor whether his attention has been called to the effect of the petrol tax in the case of contracts with Government 1067W Departments; is he aware that an the case of one firm of contractors, holding a mail contract with the Post Office, the petrol tax will amount to about £580 per annum; and will he make special provision to enable any company or firm supplying motor vehicles to a Government Department to charge the amount of such tax to the Department concerned?
§ Mr. LLOYD-GEORGEThese two questions raise practically the same point, namely, whether a person who has entered into a contract for the supply of goods before the passing of the Finance Act can increase the contract price of the goods so as to enable him to recover from the person with whom he contracts, any increase of price by reason of a duty being imposed upon the goods. This is a matter which is already provided for in a general enactment in Section 10 of the Finance Act, 1901, as amended by Section 7 of the Finance Act, 1902, and, upon the assumption that there is nothing exceptional in the terms of the contract to which my hon. Friend refers, no special provision is required in the Finance Bill by reason of the imposition of the new duty on motor spirit.