Purchase Tax

HC Deb 04 May 1948 vol 450 cc1089-90

50. Lady Grant

asked the Chancellor of the Exchequer whether he will consider reducing the Purchase Tax on leather schoolbags.

Mr. Glenvil Hall

The Chancellor's Budget proposals provided for a reduction in the rate of Purchase Tax on leather schoolbags from 125 to 100 per cent. of the wholesale value. My right hon. and learned Friend cannot see his way to propose a further reduction.

Lady Grant

Is the right hon. Gentleman aware that canvas schoolbags are of very poor quality, and that in consequence people have to buy leather schoolbags? Will he not consider this matter further?

Mr. Glenvil Hall

My right hon. and learned Friend has considered this matter. The difficulty is that leather has to be imported largely on dollar account. Leather bags are a good export for this country, and if we reduced the Purchase Tax on leather schoolbags we should have to extend that reduction to other types of bags, which would be difficult.