HC Deb 15 March 1951 vol 485 c1763
58 and 59. Sir Waldron Smithers

asked the Chancellor of the Exchequer (1) if he will set up a committee of experts to inquire into the effect of Purchase Tax on production, design, craftsmanship and special skills and marketing;

(2) provide machinery to enable trades suffering special hardship by reason of the application of the highest rates of tax or other cause to claim exemption or partial relief.

The Financial Secretary to the Treasury (Mr. Douglas Jay)

No, Sir. The trade keep the Treasury and the Commissioners of Customs and Excise fully informed on all aspects of Purchase Tax, and I can see no advantage in setting up formal machinery for consultation and inquiry.

Sir W. Smithers

Is the Minister aware that the restrictions imposed by a Socialist Government on production, by Purchase Tax, are ruining one of the best assets of our export trade, namely, quality? When the Government are appealing for exports to be increased, why does he not do all he can to remove as many controls as possible, so that traders may be free to trade abroad?

Mr. Jay

This is the job of Customs and Excise. We do not want to set up a lot more committees to do work which is already being done.

Mr. Harrison

Can my hon. Friend say which section of the export trade is subject to the Purchase Tax?

Mr. Jay

No exports are subject to Purchase Tax.