§ 63. Mr. Dunnasked the President of the Board of Trade whether he is aware that provident clothing associations and other similar organisations have circularised their clients that, after taking legal advice, the procedure to be adopted after the introduction of the Purchase Tax is to take the cost of the article, add thereto the Purchase Tax and then add thereto the usual rate of profit, thereby compelling the customer to pay usual traders' profit on the Purchase Tax in addition to the cost of the commodity; and will he say if the procedure is admissible?
Major Lloyd GeorgeI would refer my hon. Friend to the answer which I gave to the hon. Member for Burnley (Mr. Burke) on 22nd October, and would add that, in the case of goods which are price-regulated under the Prices of Goods Act —and practically all essential consumption goods whose prices are not controlled by other means are price-regulated—it is definitely illegal to charge a profit on the tax.
§ Mr. DunnI would like to ask the Minister whether, considering that thousands of people are involved in these transactions, special consideration might be given to it in so far as clients have been advised by these societies that they will be subjected to this procedure?
Major Lloyd GeorgeIn the answer that I gave to the Question put by the hon. Member for Burnley I made it clear that the circular in question was a misleading document. A good deal of publicity was given to it, and the association responsible for it has been approached by the Central Price Regulation Committee.