§ 23. Dr. Broughtonasked the Chancellor of the Exchequer what percentage of the total annual Exchequer revenue is 167 derived from the Purchase Tax on wool cloth.
§ Mr. P. ThorneycroftAbout 0.04 per cent.
§ Dr. BroughtonWill not the Chancellor forgo this tiny amount of revenue in order to remove an indefensible discrimination against the wool textile industry?
§ Mr. ThorneycroftI 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. Broughtonasked 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. ThorneycroftAs 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. BroughtonWere 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. ThorneycroftI 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. Liptonasked the Chancellor of the Exchequer whether he will now remove the Purchase Tax on crash helmets.
§ Mr. P. ThorneycroftI will bear the hon. Member's representations in mind.
§ Mr. LiptonIs 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. ThorneycroftI think that the same argument can be used in respect of 168 a number of articles of protective clothing, but I will bear the hon. Member's representations in mind.