HC Deb 22 February 1944 vol 397 c654
57. Mr. Liddall

asked the Chancellor of the Exchequer why the Purchase Tax is charged at 110 per cent. in respect of certain transactions having regard to the fact that the Finance Act of 1943 fixed the maximum rate at 100 per cent.

Sir J. Anderson

The Purchase Tax is chargeable not simply on the sale price but on the wholesale value which is defined in Section 21 of the Finance (No. 2) Act, 1940. The wholesale value may be more or less than the sale price according to the circumstances of the transaction. The case which my hon. Friend has in mind is evidently one where the sale price falls short of the wholesale value.

Mr. Liddall

Is not my right hon. Friend aware that this happens in almost every instance where a person buys direct from the wholesaler?

Sir J. Anderson

I am afraid that I did not catch the question.