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Car And Petrol Benefits

Volume 13: debated on Thursday 19 November 1981

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2.

asked the Chancellor of the Exchequer what representations he has received about his intention to apply pay-as-you-earn tax to car and petrol benefits.

As announced in the reply of 17 November to my hon. Friend the Member for Hertfordshire, South-West (Mr. Page), I have decided, in the light of representations received, to postpone the application of PAYE to car and petrol benefits for one year.

Does my hon. Friend accept that private industry will very much welcome that proposal because it will help it enormously at this difficult time?

Existing taxation arrangements will persist for the year in question. We hope to use the year in question to find a more suitable as well as administratively acceptable way of bringing about the intentions in the Finance Act.