§ 18. Mr. Higgsasked the Chancellor of the Exchequer so to modify the conditions of Purchase Tax that articles which are not normally subject to tax or are taxed at a lower rate do not become liable to tax or to tax at a higher rate merely because they are ornamented as Coronation souvenirs.
§ Mr. Boyd-CarpenterThe general principle of the Purchase Tax law in question is, I think, sound. I am considering a particular case to which my hon. Friend has drawn my attention and will write to him.
§ Mr. HiggsWill my hon. Friend bear in mind that this a matter of some urgency, because businesses are already in the process of putting articles into manufacture? Will he also bear in mind that some concessions were made by the late Administration in respect of the Festival of Britain, and that a great many people hope that Her Majesty's present Government will be at least as generous in respect of the Coronation?
§ Mr. Boyd-CarpenterI am well aware of these considerations, and I think that my hon. Friend will be well aware that he raised this matter with me as recently as Monday of this week.
§ Mr. ShurmerWill the hon. Gentleman bear in mind that the ruling that these articles would carry a 100 per cent. Purchase Tax was only recently intimated to the manufacturers, and that if this 100 per cent. tax is continued, these articles will become too expensive for the home market, and manufacturers in the City of Birmingham will lose thousands of pounds which they have spent in tooling up? Articles which, as Festival of Britain emblems, bore 66⅔ per cent. Purchase Tax now have to bear 100 per cent. Purchase Tax because a Crown has been added to them. Pencils which had 33⅓ per cent. Purchase Tax on them have now 100 per cent. Purchase Tax because they have a Crown on the top. That is absolutely ridiculous.
§ Mr. Boyd-CarpenterI do not know when the manufacturers became aware of the legal position, but I must say that that has been the position for some considerable time.