§ 57. Sir W. Wakefield
asked the Chancellor of the Exchequer why British personnel, seconded to and resident in Pakistan and paid from British Service Votes, are liable to United Kingdom tax on their pay, in view of the fact that certain retired Indian personnel on British Service special list pay Pakistan rates of Income Tax and not British rates; and, as both categories of personnel derive their pay from the same source and as there is no difference between them, will he review the position.
§ Sir S. Cripps
No. The two cases are different. Personnel in the first category receive British rates of pay from British Service Votes and are liable to United Kingdom tax on their pay like other members of the British Forces serving abroad. The position was fully explained in a statement by my right hon. Friend the Prime Minister on 30th May, 1946 [OFFICIAL REPORT, Vol. 423, c. 1366–73.] Former Indian personnel on the special list are paid by Pakistan at Pakistan rates and their pay is subject only to Pakistan tax so long as they are not resident in the United Kingdom.