HC Deb 06 December 1939 vol 355 cc684-5W
Mr. Salt

asked the Chancellor of the Exchequer whether, as a reduction in the horse-power tax on motor cars from 25s. to 20s. would encourage many owners to take out new licences in the new year who otherwise may not do so since the small allowance of petrol available makes running costs disproportionately high and the reduction in tax thus be compensated for by the increased number of licences paid, he will consider reducing the tax?

Captain Crookshank

No, Sir. Inquiries do not lead the Ministry of Transport and the Treasury to believe that a reduction in the tax would be compensated for to any material extent by the increased number of licences paid.