§ 96. Mr. Bell
asked the Chancellor of the Exchequer how much money he expects to be paid out in a full year by Her Majesty's Commissioners of Customs and Excise in tax rebates under the Finance (No. 2) Act, 1964, to exporters; and how much of this money will be recollected by the Commissioners of Her Majesty's Inland Revenue in Income and Profits Tax.
§ Mr. MacDermot
On the basis of the current level of exports, it is estimated that payments in respect of export rebates would amount to about £80 million in a full year. It is not known how much of the rebate will find its way into taxable profits. Whether or not firms pay more tax will depend on how they use the rebate. To the extent that it goes to reduce prices or to increase expenditure, for example in current expenditure on sales promotion, no tax would be payable on it.