§ 50. Mr. Joynson-Hicksasked the Chancellor of the Exchequer under what provision Purchase Tax is charged on the re-sale of surplus reconditioned government cars by the Ministry of Supply to disabled ex-Service men holding a Ministry of Transport certificate to purchase; 214 and how the assessment of the tax is calculated.
§ Sir S. CrippsUnder Section 18 (2) of the Finance (No. 2) Act, 1940, goods sold by registered wholesale merchants and manufacturers are chargeable, and these cars after re-conditioning are sold by the manufacturers on terms arranged by the Ministry of Supply, the tax being calculated on the wholesale price after reconditioning.
§ Mr. Joynson-HicksDoes not the Chancellor of the Exchequer agree that to pay Purchase Tax upon a 1939 car which has done 60,000 miles and which needs alteration and repainting is unfair to ex-Service men?
§ Sir S. CrippsI understand that the price of these cars is considerably less than that of the ordinary second-hand car.
§ Mr. Joynson-HicksSurely, that is no justification whatever for putting on Purchase Tax?
§ Sir S. CrippsThe justification is the law.
§ 53. Mr. Keelingasked the Chancellor of the Exchequer whether he is aware that the imposition of Purchase Tax on goods sold in this country for hard currency tends to deprive Britain of such currency; and whether he will consider exempting from Purchase Tax, irrespective of the place of delivery, British goods sold for hard currency.
§ Sir S. CrippsNo, Sir. Apart from the very serious administrative objections I am by no means satisfied that such a course would be in our interests.
§ Mr. KeelingDoes the Chancellor of the Exchequer appreciate the fact that this has a deterrent effect on the sale of British goods to visitors to this country from hard currency countries?
§ Sir S. CrippsWe have no evidence at all that prices here compare so unfavourably with those in hard currency countries that it stops people buying.