§ 32. Mr. Awberyasked the Chancellor of the Exchequer if he is aware that the cost of the carriage of goods is added to the price before the percentage Purchase Tax is put on; that this increases the price of the commodity to the consumer; and if he will discontinue this practice.
§ Mr. JayFor the purposes of Purchase Tax delivery charges are included by statute in the computation of value, and I cannot see my way to recommend alteration of the law in this respect.
§ Mr. AwberyCan the hon. Gentleman say whether the percentage Purchase Tax is placed on the cost of production, upon the price paid by the retailer or upon the price paid by the consumer?
§ Mr. JayThe Purchase Tax is imposed on the wholesale value of the goods, including the charges for transport and delivery.
§ 33. Mr. Redmayneasked the Chancellor of the Exchequer what steps he takes to satisfy himself that the cancellation of Purchase Tax registrations is carried out with due regard to any adverse effect on the trade of wholesalers concerned.
§ Mr. JayEach case is carefully examined and no action is taken if the nature of the trader's business is such as to warrant a continuance of the registration.
§ Mr. RedmayneIs the Minister aware that for administrative reasons many manufacturers cannot supply utility goods unless the wholesaler is registered for paying tax on non-utility goods, since the two things go together; and will he see that in dealing with this matter there is great consideration for the livelihood of the traders concerned?
§ Mr. JayWe will certainly do that wherever a case is made that registration is necessary for the trader's business.
§ Mr. RedmayneIs the Minister aware that at present the Commissioners give only 14 days' notice of cancellation, which is nothing like enough?
§ 34. Mr. Redmayneasked the Chancellor of the Exchequer to state the present reason for taxing gas and electric water heaters at different rates; and if he will remove this anomaly.
§ Mr. JayElectric immersion water heaters and electric instantaneous water heaters are charged at a higher rate than electric storage water heaters and gas water heaters, because of the need to relieve the strain upon the peak load of the electricity supply industry. I shall continue to consult my right hon. Friend the Minister of Fuel and Power on this subject.
§ Mr. RedmayneDoes the hon. Gentleman realise that the true anomaly is in putting Purchase Tax on these household goods?
§ Mr. NichollsIf the Minister considers removing the anomaly, will he make sure that the higher prices come down and not that the lower ones go up?