Orders of the Day — Tea (Customs).

Part of the debate – in the House of Commons at on 7 May 1919.

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Photo of Mr Austen Chamberlain Mr Austen Chamberlain , Birmingham West

The hon. Member's point is not that there should be some different proportion between direct and indirect taxation, but that there should be no indirect taxation at all. That would mean, for instance, that there would be no taxation on beer or spirits. Then we come to the proposal of the right hon. Gentleman (Mr. Adamson) that a large portion of the population should pay no direct taxation. Let me just say what is the proportion between direct and indirect taxation. According to the Estimates which I have laid before the House direct taxation comes to rather more than 75 per cent. of the whole tax revenue for the year, or 75.08. Sumptuary taxes—that is to say, taxes on alcohol, tobacco and entertainments—contribute 17.91 per cent., and the total contribution to tax revenue of all other indirect taxes is 7.01, which I think is not an unreasonable proportion of the whole amount. I believe it is a smaller proportion than any that has been reached in quite recent years.