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Car Tax (Flat Rate)

Volume 498: debated on Tuesday 1 April 1952

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asked the Chancellor of the Exchequer what would be the estimated loss of revenue arising from a modification of his present proposals to levy a £12 10s. flat rate on all cars licensed in the United Kingdom, to permit pre-1947 cars of nine h.p., and less, to continue to pay tax at the old rate, that is, £1 5s. per h.p.

In view of the comparatively small figure that my right hon. Friend has just given, and in view of the fact that the flat rate was originally introduced, not for revenue purposes but to help the export trade, which is in no way concerned with pre-war cars, will the Chancellor consider the particular case I have mentioned, which reacts certainly on the least well off section of the motoring community?

I referred in my Budget speech to the difficulties of some of these people, but I cannot go further today.