Transfer of Sum from Road Fund to Exchequer.

Part of Income Tax. – in the House of Commons at on 26 April 1927.

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Photo of Mr Frederick Pethick-Lawrence Mr Frederick Pethick-Lawrence , Leicester West

Though I object on principle to indirect taxation, when it comes to the taxation of luxuries, such as wines, I am bound to say that my objections are not very strong. There are two points in regard to these proposals which seem to me to demand some consideration. The first point is, how far this is a protective duty and how far it is a revenue duty. Ordinarily one assumes that all duties are purely revenue proposals, but I understand that on this occasion the Chancellor of the Exchequer has taken cognisance, for the first time, of the fact that there is a production of wine in this country, and for that reason we are to discuss the Excise Duty which follows the import Duty upon wine. I should like, therefore, on this Resolution or the next if the Chancellor of the Exchequer would say a few words as to how far the Excise Duty which he is proposing is really the equivalent to the Customs Duty on imported wines. Does he think that the two duties are precisely the same? The other point is the matter of Imperial Preference. There again, on the general principle, my objections to Imperial Preference are not so great in the matter of wines as they are on some other things on which the Government has chosen to put a preference, but I should like to know whether the Government are really of opinion that what we are doing in the matter of Imperial Preference is creating any real obligation on the side of the Dominions. I only know that one of the most important industries in my own constituency is complaining a great deal about the way they are being treated by the Dominion of Australia. I am not proposing to pursue that subject because obviously it is out of order on the present occasion, but if the Government is going to enlarge and increase Imperial Preference in the belief that they are thereby currying favour with the Dominions—the experience which we are getting suggests that they are much mistaken—I should like to know whether, in giving all these advantages to the Dominions by a preference on this and a preference on that, and now by a considerable preference in the matter of wines, the Government are getting anything like reciprocal advantages from the Dominions?