HC Deb 18 January 1949 vol 460 cc22-3
33. Sir John Mellor

asked the Chancellor of the Exchequer whether he has reconsidered the provisions of S.I., 1948, No. 2398, which relates to Purchase Tax on floor coverings; and what action he has taken to amend it.

Sir S. Cripps

In accordance with the undertaking given by my hon. Friend the Economic Secretary on 13th December, I have carefully reconsidered this question. But I am not convinced of the necessity of amending this Order at present.

Sir J. Mellor

Will the Chancellor call a conference of the various parties affected by this Order, with a view to trying to make an improvement in it.

Sir S. Cripps

There was discussion with all those affected by it before I arrived at my decision.

Mr. J. Lewis

Is the Chancellor aware that in a Debate in this House the Minister responsible for answering on behalf of the Government admitted that there was something wrong with it? In view of that how is the Chancellor able to reconcile his present statement with what was said previously by the Minister to whom I have referred.

Sir S. Cripps

I have made full inquiries and my conclusions are those which I have given.

45. Mrs. Castle

asked the Chancellor of the Exchequer whether he is aware that married women who have their wedding rings remodelled in order to be able to continue wearing them in later life are being charged 100 per cent. Purchase Tax on the wholesale value of the remodelled ring, even where no extra material is used; and whether he will consider amending the law in this respect.

Sir S. Cripps

No, Sir. In such a case under Section 21 of the Finance Act, 1945, tax is payable only on the jeweller's charge for remodelling the ring.

Mrs. Castle

Will not my right hon. and learned Friend consider altering this Section of the Act in order to help those married women who cannot afford to buy a new wedding ring when they out-grow their old one, and who when they try to "make do and mend" are taxed to the tune of 100 per cent.?

Sir S. Cripps

It would be a very small matter indeed, if it is only the charge for remodelling the ring.

Mr. Piratin

Would not the Chancellor adopt the same method here which operates in the case of fur garments, which are remodelled and no tax is charged?

Mrs. Castle

Is my right hon. and learned Friend aware that in the case of one example which I sent him the tax was 10s. 6d. and that that is not a small amount to a working class woman?

Sir S. Cripps

It must have been a very excessive charge.