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60.
Sir W. Smithers
asked the Chancellor of the Exchequer what tax was paid by the Ministry of Food on profits made in 1949–50 of £14,800,000 on sugar, £4,800,000 on coffee and cocoa and £2,800,000 on fresh fruit and vegetables.
Mr. Gaitskell
Income Tax and Profits Tax, to which I assume the hon. Member refers, are not chargeable on profits which accrue to the State.
Sir W. Smithers
Is it not a fact that profits made under free enterprise are subject to tax? Why, therefore, should not the Ministries who are now trading be liable to tax when they are in competition with private enterprise?
Mr. Gaitskell
It would be a sheer waste of time to take the tax away and then pay it back to the Exchequer.
Sir W. Smithers
The whole thing is a ramp.