Mr. A. T. DAVIESasked the Under-Secretary of State for India whether his attention has been directed to the duty. of 30 per cent. imposed by the Government of India on British-made and other motor ears; whether he is aware that the Government of India now classes motor cars as luxuries with watches and jewellery; and, seeing that numbers of low-priced American ears are being imported in India, as the duty does not hit them, and that the duty has practically killed British overseas trade in India with motors cars, will he, with a view to encouraging home industry, represent to the Government of India the need for the removal of the 30 per cent. duty on British-made motor cars?
§ Earl WINTERTONThe duty on motor cars imported into India was raised last March from 20 to 30 per cent., a rate which also applies to the other articles named. My attention has been drawn to the suggested effect of the new rate, but it is, I think, too early to form a considered judgment on the result of a duty so recently imposed. The increased rate was introduced, as my hon. Friend is aware, for purely revenue purposes, and its effect will doubtless be carefully watched by the Government of India.