§ 45. Mr. Errollasked the Chancellor of the Exchequer why domestic type water softeners which have been modified for industrial requirements are now being relieved of Purchase Tax when industrial gas water heaters in a similar tax group are not so exempted.
§ The Chancellor of the Exchequer (Sir Stafford Cripps)The intention is in both cases that only those types which are designed exclusively for industrial use shall be exempt from tax. Inquiries are being made about the way in which this intention is being carried out, and I will write to the hon. Member later.
§ Mr. ErrollBefore the right hon. and learned Gentleman writes to me, will he take into consideration the fact that other Ministries are pressing a number of industrial concerns to install suitable washing facilities in their premises, and that therefore it is most undesirable to maintain Purchase Tax on water heaters when his Department has, in fact, already removed the tax from water softeners for such purposes?
§ Sir S. CrippsI will ascertain how the matter is being dealt with and write to the hon. Member about it.
§ Mr. Charles WilliamsWhy may we not all have that knowledge?
§ Sir S. CrippsBecause the hon. Member for Altrincham and Sale (Mr. Erroll) is interested in it.
§ Mr. ErrollAs several hon. Members have already stated that they are interested in this matter from the point of view of their own constituents, I would be grateful if the answer could be circulated in HANSARD so that my secretary could be spared the labour of re-typing the Chancellor's reply.
§ Sir S. CrippsI will see that the hon. Member is sent some copies.
§ 54. Mr. Awberyasked the Chancellor of the Exchequer if he is aware that the Purchase Tax on a variety of household utensils has prevented the housewives from obtaining them; that this restriction on demand has already reflected itself in a reduction in the amount of work performed by part-time workers and is likely to create unemployment in the factories producing for the home market; and whether he will take early steps to remove the tax on such utensils.
§ Sir S. CrippsThere has been some decline in sales of both tax-free and taxable articles of this class, but as regards the last part of the Question I cannot anticipate my Budget Statement.
§ Mr. AwberyWould not the extra production created by the removal of this tax help the export market as well as the home market?
§ Sir S. CrippsI do not think that that necessarily follows.
§ 64. Major Legge-Bourkeasked the Chancellor of the Exchequer why Purchase Tax at 66⅔ per cent. is levied on household dusters manufactured from 4 in. by 2 in. flannelette which was Government surplus stock; and if he will remove such articles from the category of luxury articles.
§ Sir S. CrippsThe 66⅔ per cent. rate applies to non-Utility household textile articles generally. It is, therefore, not a luxury rate, and I could not deal with particular kinds of dusters separately.
§ Major Legge-BourkeDoes the right hon. and learned Gentleman really think 743 that the unfortunate housewives should have to pay 66⅔ per cent. on articles of this description?
§ Sir S. CrippsOne cannot deal with a particular article separately in the Purchase Tax.
§ Major Legge-BourkeDoes the right hon. and learned Gentleman think he is entitled to take a double profit on these, once when they are sold and once when they are taxed later?