§ I now turn to two further proposals in the field of indirection taxation. The first relates to Purchase Tax. It is designed to benefit the ordinary householder and, in particular, those families with low incomes who may fail to derive advantage from taxation relief in other fields. The concessions which I propose will be of help in the home and especially perhaps to those setting up house for the first time. I propose to reduce from 30 per cent. to 15 per cent.—that is, to halve— the rate of Purchase Tax on domestic kitchenware and tableware, whether of metal, pottery, glass or other materials, and also on cutlery and such furniture as is now liable at the 30 per cent. rate. I am also halving the present 30 per cent. rate on floor coverings—linoleum, carpets, and so on.
§ These changes will operate as from tomorrow; their cost will be about £18 million this year and about £24 million in a full year. 1 believe that this will not only be welcomed by consumers, but will be of help to a number of British industries affected. I am also taking the opportunity to apply the Provisional Collection of Taxes Act, 1913, to Purchase Tax. This will rectify a defect in the existing legal machinery for tax collection.