HC Deb 31 July 1956 vol 557 cc1140-1
38. Dr. Broughton

asked the Chancellor of the Exchequer what percentage of the annual revenue from Purchase Tax comes from the tax on wool cloth.

Mr. H. Macmillan

Just under .5 per cent.

Dr. Broughton

While thanking the Chancellor for that information, may I ask him whether he has given further thought to means of overcoming the problem that stands in the way of removing this tax? Will he not consider removing Purchase Tax on clothing, rather than allow this unjust discrimination against wool cloth to remain?

Mr. Macmillan

That is a larger question which, of course, I have under consideration all the time.

Mr. Glenvil Hall

Surely the right hon. Gentleman realises that the yield from this tax is out of all proportion to the damage done to the industry?

Mr. Macmillan

The yield is about £2 million. I have to take that into account in considering the general problems involved.