HC Deb 18 December 1958 vol 597 cc1300-2
40. Mr. Nabarro

asked the Chancellor of the Exchequer whether he will carry out a review into the present adverse effect which the 60 per cent. and 30 per cent. rates of Purchase Tax are having on the export trade of the industries affected by the said rates.

Mr. Simon

I would refer my hon. Friend to the reply given by my right hon. Friend the Chancellor of the Exchequer to my hon. Friend the Member for Barry (Mr. Gower) on 9th December.

Mr. Nabarro

But would not my hon. and learned Friend recognise that three of our major exporting industries, the motor vehicle industry first, the radio and television industry second, and the toilet preparations industry third, have now presented to the Chancellor of the Exchequer detailed arguments and cogent reasons for alleviating the 60 per cent. rate of Purchase Tax on their products, which is so adversely affecting exports? Does not this merit special consideration before the Budget?

Mr. Simon

My right hon. Friend will, of course, give full consideration to all representations which are made to him. and they certainly include the representations to which my hon. Friend refers, but, of course, he has got to weigh export considerations against the need for revenue.

41. Mr. Nabarro

asked the Chancellor of the Exchequer whether he will abolish Purchase Tax on all gas water heating appliances, with a view to increasing production of primary smokeless fuels, such as gas and coke, in pursuit of clean air policy, while making the best use of the nation's coal, in accord with the recommendations of the Ridley Committee. 1952.

Mr. Simon

I would refer my hon. Friend to the reply given by my right hon. Friend the Chancellor of the Exchequer on 18th November to the hon. Member for Barnsley (Mr. Mason).

Mr. Nabarro

Has my hon. and learned Friend observed that a gas cooker, for example, has no Purchase Tax on it and that a gas water heater has 30 per cent. Purchase Tax on it? Is it not equally desirable, socially and otherwise, that people should have hot baths as well as heating their Sunday lunch? Why is there this unfavourable discrimination between heat for the preparation of food and for the cleanliness of the human body?

Mr. Simon

My hon. Friend will have remarked that the rate of tax on most domestic gas water heating appliances was reduced from 60 per cent. to 30 per cent. in the last Budget. So a substantial step was taken in the social directions my hon. Friend indicates.

Sir H. Roper

While we should all like to see the end of Purchase Tax, is my hon. and learned Friend aware that many of us would prefer to see the repayment of post-war credits?

Mr. Nabarro

That has nothing to do with it at present.

42. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that the present net yield to the Exchequer of Purchase Tax on commercial vehicle chassis, after taking into account initial allowances and depreciation allowances thereon, is not in excess of £8 million per annum; and whether, in view of the small proportion which this sum hears to the £500 million per annum which he is still obtaining from Purchase Tax, despite recent reductions. he will undertake to deal with the abolition of the Purchase Tax on commercial vehicle chassis as a matter of urgency.

Mr. Simon

Without accepting my hon. Friend's premise, I must again refer him to the reply given by my right hon. Friend the Chancellor of the Exchequer to the hon. Member for Barnsley (Mr. Mason) on 18th November.

Mr. Nabarro

Yes, but 18th November is some time ago. Has my hon. and learned Friend observed that the industry producing commercial vehicle chassis is at the present time tending to be depressed both in respect of home demand and exports, and that many of the works are situated in areas which have a level of unemployment higher than the national average? Would it not be desirable from every point of view unilaterally to relieve commercial vehicle chassis before the next Budget and thus help the employment position?

Mr. Simon

I do not think I can enlarge on the reply which my right hon. Friend originally gave, except to spell out what my right hon. Friend said. which was that my hon. Friend must not expect pronouncements from me about possible changes in taxation."—[OFFICIAL REPORT, 18th November, 1958; Vol. 595, c. 122.]