§ Mr. WATT
asked the Secretary to the Treasury if he can now give to the House the method of calculation which will be adopted by his Department for arrriving at the units of horse-power of motor cars under Section 66 (2) of the Finance Bill; and will he, in view of the fact that this Clause is to be considered this week, say whether the unit is to be makers' nominal horse-power or that of the Royal Automobile Club formula?
§ Mr. HOBHOUSE
The precise method of calculating the horse-power of motor cars for the purposes of Clause 66 of the Finance Bill will, in accordance with Subsection (2) of that Clause, be laid down by Regulations to be framed by the Treasury after the Bill has become law. The draft of the proposed Regulations is now under consideration, but I am not in a position to add anything to the statement made by my right hon. Friend in his Budget speech, except that the calculation will be based on the power which a car is actually capable of developing and not upon any purely nominal rating. The Treasury Regulations will be laid before Parliament in due course.
§ Mr. ARTHUR LEE
Will the Treasury see that whatever standard is adopted the owners of cars, banâ fide believing that there is a certain horse-power in their cars, will not have their rating increased for the purposes of taxation?
§ Mr. HOBHOUSE
It is quite impossible to give that assurance off-hand. I will endeavour to see what can be done.
§ Mr. H. A. WATT
Is the right hon. Gentleman aware that without this definition these taxes cannot be considered properly by this House?