§ Mr. HunterTo ask the Chancellor of the Exchequer if he will make a further statement on the Government's policy regarding the taxation of company cars and on the increase in the taxation of company cars which has taken place since 1979.
§ Mr. MaudeThe Government's policy is that, so far as possible, there should be broad neutrality in the tax treatment of remuneration paid in cash and in kind. In keeping with that policy, the aim has been to ensure that, as regards cars provided to employees by employers, the statutory income tax scale charges realistically reflect the value of the benefit of a car's availability for private use. That has involved substantial increases in the level of the scales since 1979.
The scale charges and the total tax burden on the car industry are of course kept under close review.