§ Sir B. PETOasked the Chancellor of the Exchequer whether, in order to provide the revenue now lost to the Exchequer by the progressive absorption by the co-operative societies of retail trade and industrial production which is or has been carried on by limited companies or private individuals, he will consider the amendment of Section 31, Sub-section (3), of the Finance Act, 1933, under which the dividends paid by co-operative societies to their members are deducted as expenses in computing their income on which tax is payable at the source?
§ Mr. HORE-BELISHAMy right hon. Friend is not prepared to adopt my hon. 763W Friend's suggestion. Sub-section (3) of Section 31 of the Finance Act, 1933, is of a declaratory character, and merely provides that dividends on purchases, etc., granted by co-operative societies, shall be treated for Income Tax purposes on the same principles as apply under the general Income Tax law as regards discounts or rebates granted by other traders.