HC Deb 05 March 1957 vol 566 cc166-8
23. Dr. Broughton

asked the Chancellor of the Exchequer what percentage of the total annual Exchequer revenue is derived from the Purchase Tax on wool cloth.

Mr. P. Thorneycroft

About 0.04 per cent.

Dr. Broughton

Will not the Chancellor forgo this tiny amount of revenue in order to remove an indefensible discrimination against the wool textile industry?

Mr. Thorneycroft

I do not think it is an indefensible discrimination. It is one of the lowest rates of Purchase Tax that there are, namely, 10 per cent. on wool cloth.

24. Dr. Broughton

asked the Chancellor of the Exchequer for how long he proposes to retain the Purchase Tax on wool cloth; and what conditions will be required to be satisfied before he removes it.

Mr. P. Thorneycroft

As has been explained to the hon. Member before, the problem of the small tailor makes it necessary to retain this tax as a counterpart to the tax on clothing.

Dr. Broughton

Were not the few real and many imaginary administrative difficulties satisfactorily overcome in the case of non-wool textiles? What is the real reason why the Chancellor persists in this unjust discrimination against the wool textile industry?

Mr. Thorneycroft

I think that the real reason is the very large number of people who make up wool cloth. If we had a 5 per cent. tax, we should catch only those who were registered, and that would mean that all the others would have a 5 per cent. advantage.

29. Mr. Lipton

asked the Chancellor of the Exchequer whether he will now remove the Purchase Tax on crash helmets.

Mr. P. Thorneycroft

I will bear the hon. Member's representations in mind.

Mr. Lipton

Is the Chancellor aware that crash helmets save lives and that it is quite idiotic to tax them? Furthermore, in this instance would it not be quite safe, in the interest of public safety, for the right hon. Gentleman to anticipate his Budget statement?

Mr. Thorneycroft

I think that the same argument can be used in respect of a number of articles of protective clothing, but I will bear the hon. Member's representations in mind.