§ Sir H. CROFT
asked the Secretary of State for India why, in the recent measures passed for the retention of the 5 per cent. cut in the salaries of the services in India after the restoration of the original 10 per cent. cut, the Govern- 1946W ment imposed a 25 per cent. surcharge on the existing Income Tax?
§ Sir S. HOARE
The retention of the reduced pay cut of 5 per cent. in the Indian Budget of 1934 was not associated with any increase of Income Tax. If the hon. and gallant Member is referring to the withdrawal, in 1933, on reduction of the pay cut to 5 per cent. of certain Income Tax concessions granted in connection with the imposition in 1931 of a 10 per cent. cut, I would refer him to the statement made by my hon. Friend the Under-Secretary of State for India in his speech of 23rd February, 1933, on the Second Reading of the Indian Pay (Temporary Abatements) Bill.