The Archive · 1940

Labour Members Question Purchas Tax in House of Commons

Sir John Simon Warns That Levy Will Be Severe Discrimination Against Low-paid Men Alleged

London, May 2.

Despite Labour opposition, the House of Commons last night passed, by 145 votes to 86, a financial resolution dealing with the proposed purchase tax which the Chancellor of the Exchequer, Sir John Simon, outlined last week in presenting his Budget.

In introducing the resolution, Sir John said: "We must face squarely the need for a limitation of civilian consumption in wartime."

He declined to commit himself at the present stage as to the exact amount of the tax, but seid such supplies as clothes must be included. A tax on luxuries alone, he said, would not raise the necessary money.

"It is my duty," he added, "to tell the House that the tax must substantial announced that the Labour Party opposed the resolution because the suggested tax would press unfairly on lower paid workers.

"Mr. A. V. Alexander, Labour member for the Hillsborough division of Shefüeld, also opposed the tax, He said there were other means of revenue.

Sir John Simon asked: "Such as what?"

Mr, Alexander replied: "Taxation of land values, a real mobilization of the capital wealth of the coun. try, and levy on war wealth now.

Captain H, F. C. Crookshank, Financial Secretary to the. Treasury, referring to the plea by a member that the House should not "sink so low" as to impose a sales tax, pointed out that a number of countries, including Canada, Australia and New Zealand, had such a tax—Reuter,

Text read from the printed page and cleaned; old type leaves the occasional error.

Your account