§ 27. Mr. Lewisasked the Chancellor of the Exchequer why an ordinary 2-gallon enamel pail is taxed at 30 per cent., while the same pail, with half-gallon graduation marks inside, is tax free; and whether he will take the necessary action to rectify this anomaly.
§ Mr. H. BrookeThe tax applies only to pails of the domestic type. Graduated enamelled pails are typically not of that type. I do not think there is any anomaly to rectify.
§ Mr. LewisBut is the Minister aware that it is now the position that manufacturers, if they wish to dodge Purchase Tax—which they are doing—are putting markings on the pails? Is he aware that the big stores are now flooding their shops with graduated buckets and pails in order to obviate the payment of this tax? Is it not stupid to have a tax on one type of pail and not on the other?
§ Mr. BrookeSome months ago we received complaints that this tax was being avoided by the sale to domestic users of a certain type of enamel pail; and we pointed out to the manufacturers concerned that unless it could be shown that the graduated pails continued to be of a non—domestic kind, they must become chargeable with tax. So I think that the matter has been cleared up.
§ Mr. LewisIs the Minister aware that Woolworth's, Marks and Spencer's and all the stores—[Horn. MEMBERS: "And Lewis's."]—yes, and Lewis's, although they have no connection with me—are now selling these pails and buckets with the graduation marks on them to avoid the payment of Purchase Tax, and one cannot blame them? I am asking the 1404 Minister whether it is not stupid to make the manufacturers put on these marks, and thus cause extra work, when the best way would be to have them freed from Purchase Tax?
§ Mr. BrookeThat is exactly what has been stopped. It is possible that some graduated pails which avoid the tax are still in the retail shops side by side with tax-paid pails. But in fact the manufacture of these pails of which the hon. Member complains has been stopped.