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New Clause—(Charge Of Higher Rate Of Duty On Change In User, Etc, Of Mechanically Propelled Vehicles)

Volume 155: debated on Wednesday 21 June 1922

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  • (1) Where a licence has been taken out for a mechanically-propelled vehicle at any rate under the Second Schedule to the Finance Act, 1920, and the vehicle is at any time while such licence is in force used in an altered condition or in a manner or for a purpose which brings it within, or which if it was used solely in that condition or in -that manner or for that purpose would bring it within, a class or description of vehicle to which a higher rate of duty is applicable under the said Schedule, duty at such higher rate shall become chargeable in respect of the licence for the vehicle.
  • (2) Where a licence has been taken out for a mechanically-propelled vehicle, and by virtue of such user as aforesaid a higher rate of duty becomes chargeable and the higher rate was not paid before the vehicle was so used, the person so using the vehicle shall be liable to a penalty of an amount equal to three times the difference between the duty actually paid on the licence and the amount of duty at such higher rate or twenty pounds, whichever amount is the greater.
  • (3) This Section shall come into operation on the first day of January, nineteen hundred and twenty-three."—[Mr. Neal.]
  • Brought up, and read the First time.

    I beg to move, "That the Clause be read a Second time."

    I have to move one or two new Clauses dealing with motor taxation, but they do not raise any serious controversial questions, such as the question how taxation should be raised for road purposes. In order to make clear the first Clause I shall have to deal with certain taxation in the Finance Act of 1920. Under that Act, by the Second Schedule, the rate of duty -was fixed for various vehicles according to their character. The 4th Clause related to vehicles used solely in the course of trade or in agriculture. The 5th Clause was for vehicles used or adapted for carrying goods in the course of trade, and for such things as motor lorries. The 6th Clause was intended to cover mainly private motor cars which were taxed according to horse-power. As is always the case in reference to new taxation, ingenuity was brought to bear by certain persons in the effort to get exemption from some of the duties and to escape with the horse-power tax. I may give one or two instances in illustration. [HON. MEMBERS: "Agreed!"] If that be the case, I will content myself by moving that the Clause be now read a Second time.

    Question put, and agreed to.

    Clause read a Second time, and added to the Bill.