§ 83. Sir J. Mellorasked the Chancellor of the Exchequer why by S.I., 1948, No. 2398, he has retained Purchase Tax upon floor coverings generally, while exempting tiles or strips not exceeding 450 square inches in area; and whether he will remove this discrimination.
§ The Economic Secretary to the Treasury (Mr. Douglas Jay)Tiles or strips not exceeding 450 square inches in area have been exempted from Purchase Tax to assist the housing programme, since this form of flooring is now extensively used by builders owing to the shortage of timber. Larger sizes are not 37 generally used by builders and any discrimination involved would, therefore, be negligible.
§ Sir J. MellorIs the hon. Gentleman aware that this order is causing rubber sheeting to be cut up into small pieces, which is wasteful of time, labour and material? Will he say why it is not possible, in order to prevent this, to extend the exemption to all these flooring materials?
§ Mr. JayBecause the exemption affects only materials actually used for flooring and not those simply for covering floors. Materials used for covering floors have always been taxed.
§ Sir J. MellorDoes not the hon. Gentleman agree that the result of this order is to cause rubber sheeting to be cut into small pieces to avoid the payment of Purchase Tax?
§ Mr. J. LewisWill my hon. Friend realise that, in so far as this order is concerned, a mistake has been made by his Department, and that the facts and information relating to the matter have been placed before his Department? Does he not realise that what the hon. Baronet has said is perfectly correct, and that people are buying large strips and cutting them up so that they may be exempt from tax? It is an utter absurdity, and my hon. Friend ought to take the order back and look at it again.
§ Mr. JayI am not aware that a mistake has been made. If my hon. Friend has further information to lay before us we shall certainly look at it.