HC Deb 15 March 1934 vol 287 c595W

asked the Chancellor of the Exchequer whether, in view of the fact that a decision has been reached to the effect that power alcohol produced from imported molasses and used as a motor fuel in this country is free from Excise Duty, he will be prepared to exempt from Excise Duty also motor spirit produced in this country from imported crude oil?


No, Sir. It is true that power alcohol made from imported molasses has for some years been exempted by Statute from Excise Duty and no new decision on this matter has been taken. But the fact that an almost negligible amount of this power alcohol is used as a motor fuel is not a reason for destroying the petrol tax, and if any action should become necessary I am afraid that I could not hold out any hope that it would be on the lines suggested.