§ 51. Mr. Woodburnasked the Chancellor of the Exchequer whether he will consider the exemption of all clothing now rationed by coupons from Purchase Tax?
§ 49. Mr. Ridleyasked the Chancellor of the Exchequer whether, in view of the rationing of clothing, he will arrange to remove clothing from the operation of the Purchase Tax?
§ Sir K. WoodNo, Sir. The rationing scheme limits the quantity of clothing that can be purchased by an individual, but does not limit the amount that can be spent on clothing within the ration. In view of the vital importance of financing our war effort, I cannot in the present circumstances forgo the revenue derived from such purchases.
§ Mr. WoodburnIs not the Minister aware that since clothing is necessary for working people, this leads to increased wages to meet the cost of that clothing and that the Purchase Tax simply raises the quantity of money required without making any difference to the consumption?
§ Sir K. WoodPerhaps the hon. Gentleman will be able to argue that point later.