§ 38. Mr. Grant-Ferrisasked the Chancellor of the Exchequer if he is aware that the imposition of the Selective Employment Tax upon the disclaimed hospitals will be more than their financial situation can bear; and if he will exempt them from it.
§ Mr. CallaghanNo.
§ 41. Mr. Danceasked the Chancellor of the Exchequer what relief he proposes to make in the case of horticulturalists who 204W will have to pay the Selective Employment Tax but who are not covered by the Agriculture Price Review.
§ Mr. DiamondI would refer the hon. Member to the reply given by my right hon. Friend the Minister of Agriculture on 13th May.
§ 44. Mr. Boyd-Carpenterasked the Chancellor of the Exchequer whether it is his intention to apply the Selective Employment Tax to the employment of retirement pensioners.
§ 59. Mr. Gowerasked the Chancellor of the Exchequer if he will exempt the employment of retirement pensioners from the Selective Employment Tax.
§ Mr. CallaghanI shall continue to have them in mind, but I have no statement to make.
§ 45. Mr. J. E. B. Hillasked the Chancellor of the Exchequer what levels of employment tax, levied in the same ratio as men 25s., women and boys 12s. 6d., and girls 8s. but on a non-selective basis without refunds or premiums, would be required to yield an estimated revenue of £315 million, £240 million and of £100 million, respectively.
§ Mr. DiamondFollowing is the information:
£m. £m. £m. Full year revenue 315 240 100
Weekly Contribution Rates:— s. d. s. d. s. d. Men 9 3 7 0 2 11 Women and boys 4 7 3 6 1 6 Girls 2 11 2 3 11 These calculations assume refunds to those employed in national and local Government, the nationalised industries and public education and health services.
§ 46. Mr. Juddasked the Chancellor of the Exchequer whether he will exempt organisations registered as charities under the Charities Act 1960 from the Selective Employment Tax.
§ Mr. CallaghanNo, this would not be possible.
§ 47. Mr. Gibson-Wattasked the Chancellor of the Exchequer whether he will set up an interdepartmental committee 205W to report on the effects of the Selective Employment Tax on depopulation in rural Wales.
§ Mr. CallaghanNo. Satisfactory arrangements already exist for considering Welsh problems.
49. Mr. Gresham Cookeasked the Chancellor of the Exchequer if he will assess the proposed Selective Employment Tax by way of companies rather than establishments.
§ Mr. DiamondNo.
50. Mr. Gresham Cookeasked the Chancellor of the Exchequer whether he will give consideration to the special position of learned societies with a view to exempting them from the Selective Employment Tax.
§ Mr. DiamondI can see no reason for exempting these societies.
§ 51. Sir Knox Cunninghamasked the Chancellor of the Exchequer what annual amount he expects to recover from charities by means of the Selective Employment Tax.
§ 57. Mr. Boyd-Carpenterasked the Chancellor of the Exchequer what is his estimate of the yield in a full year of the Selective Employment Tax derived from payments made by registered charities in respect of persons employed by them.
§ Mr. CallaghanThis information is not available.
§ 52. Mr. Cleggasked the Chancellor of the Exchequer whether, in view of the value of their work for deep-sea fishermen, he will exempt the Royal National Mission to Deep Sea Fishermen from the Selective Employment Tax.
§ Mr. CallaghanI cannot add to what I have already said about charities.
§ 55. Mr. Woodnuttasked the Chancellor of the Exchequer what would be the total revenue of the Selective Employment Tax in a full year if the rate were reduced to 7s. 6d. per week per person with no exemptions.
§ Mr. DiamondAbout £324 million, assuming refunds to those employed in the public sector. But to dispense with refunds and premiums would frustrate the whole purpose of the scheme explained in the White Paper.
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§ 60. Mr. Gowerasked the Chancellor of the Exchequer what assistance he will give to retailers to meet additional costs which will arise from the imposition of the Selective Employment Tax.
§ Mr. CallaghanNone. My purpose is to widen the tax base by taxing services, of which retailing is among the largest.
§ 63. Mr. Edelmanasked the Chancellor of the Exchequer whether he will seek to exempt the staff of places of worship from the operation of the Selective Employment Tax.
§ Mr. CallaghanI am considering representations that have been made to me, but I cannot add to what I have already said.
§ 64. Mr. Pavittasked the Chancellor of the Exchequer what estimate he has made of the effect of the proposed Selective Employment Tax on the price of goods retailed by multiple stores.
§ Mr. DiamondDepending on the extent to which the tax were passed on, the effect on retail prices including the price of goods sold by multiple stores, would vary between nothing and ½ of 1 per cent.
§ 65. Mr. Pavittasked the Chancellor of the Exchequer what estimate he has made of the cost to the Exchequer of exempting all part-time employees who work 21 hours a week or less from the provisions of the proposed Selective Employment Tax.
§ Mr. DiamondNo precise estimate is available but it would be a substantial sum.
§ 68. Sir G. Nabarroasked the Chancellor of the Exchequer by what sum his net prospective yield of £240,000,000 in a full year from Selective Employment Tax would be reduced by exempting all payment of the tax by employers with fewer than twelve employees at any single establishment.
§ Mr. DiamondThere are no comprehensive statistics for employers with fewer than twelve employees at any single establishment. I do not in any case propose to relieve such employers of the tax.
§ 69. Sir G. Nabarroasked the Chancellor of the Exchequer whether Members of Parliament and their staffs are liable to Selective Employment Tax.
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§ Mr. CallaghanIn their capacity as Members of Parliament hon. Members have always been regarded as self-employed. They will therefore be liable to the selective employment tax only in respect of their personal staff.
§ 72. Mr. Lubbockasked the Chancellor of the Exchequer whether the Selective Employment Tax will be levied on British citizens working for British companies in overseas countries.
§ Mr. DiamondEmployers with a place of business in this country are normally required to pay National Insurance contributions for persons ordinarily resident here during the first twelve months of employment overseas following employment in this country. Liability for tax will run with liability for these contributions.
§ Mr. Rowlandasked the Chancellor of the Exchequer if he will exempt from payment of the Selective Employment Tax widowers or widows with children of school age or under who employ full-time domestic help, or increase the tax relief allowed for the employment of full-time domestic help by a sum which on average would equal the selective employment tax.
§ Mr. CallaghanIt is not practicable to exempt these persons from payment of the Selective Employment Tax. I have noted by hon. Friend's suggestion about Income Tax relief.
§ Mr. Dodds-Parkerasked the Chancellor of the Exchequer what rates of employment tax, in the same proportions as proposed for the Selective Employment Tax, would be required to collect the same amount as is yielded for Income Tax; and what would be the approximate saving in cost of collection for the Inland Revenue.
§ Mr. DiamondIt is not possible to make any useful estimates.
§ Mr. Russell Johnstonasked the Chancellor of the Exchequer whether he will define tourism as a manufacturing industry for the purpose of the proposed Selective Employment Tax.
§ Mr. DiamondNo.
§ Mr. Russell Johnstonasked the Chancellor of the Exchequer whether, in view 208W of the anomalies and difficulties which will arise, he will define agriculture as a manufacturing industry for the purposes of the proposed Selective Employment Tax.
§ Mr. DiamondThe position of agriculture will not be anomalous. I would refer my hon. Friend to the statement made by the Minister of Agriculture on 13th May.
§ Sir C. Osborneasked the Chancellor of the Exchequer what reply he has sent to the Royal National Mission to Deep Sea Fishermen to their letter asking for exemption from the proposed Selective Employment Tax, which would cost this charity nearly £10,000 a year; and if he will make a statement.
§ Mr. CallaghanI have taken careful note of what they say but at present I cannot add to what I have already said about charities.