§ Mr. POLLOCKasked the Chancellor of the Exchequer whether he is aware that industrial co-operative societies have, according to the Report of the Registrar-General just issued (89 II.), a profit for disposal on the year's working (1912) of nearly twelve millions, and that this profit income is exempt from the payment of Income Tax under Schedules C and D; and whether, at a time when all persons 946W are desirous of contributing fairly to the national burdens, he will consider the question of withdrawing or partially reducing the immunity from Income Tax which such societies enjoy in order to lessen the difference of burdens between such societies and smaller traders?
§ Mr. LLOYD GEORGEI am aware of the report to which the hon. Member refers, but I am not prepared to suggest any alteration in the existing exemption from Income Tax. The so-called profit, so far as it arises from the sales to members themselves, is not a real profit within the purview of the Income Tax, while any profit arising from sales to non-members, which is usually very small, is taxable under the existing law, if it comes into the hands of any person whose income exceeds £160.