§ Mr. HOLMESasked the Chancellor of the Exchequer whether National War Bonds are accepted in payment of Excess Profits Duty, but not in payment of coal mines excess payments; and why such differentiation is made for the two taxes, which are identical in incidence?
Mr. CHAMBERLAINNational War Bonds are accepted in satisfaction of amounts due on account of Excess Profits Duty, in accordance with the terms of issue of these securities. There is no legal power to accept securities in pay-468W ment of Coal Levy, and to do so would confer an uncovenanted benefit on holders for which the taxpayer would have received no equivalent. Coal Levy is not paid to the Exchequer, but is used to make equalising payments to the less remunerative collieries. These payments obviously could not be made in securities.