Purchase Tax (Hansard, 20 February 1958)

§ 28. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that the present provision by which a 90 per cent. rate of Purchase Tax is applied not only to all toilet preparations but to the packages, containers and 1383 bottles in which they are supplied, imposes a severe handicap on the export business of the toilet preparations industry in this country in so far as in many cases it may necessitate having different packages for the home and export market; and whether sympathetic consideration may be given to this matter at an early date.

§ The Financial Secretary to the Treasury (Mr. J. E. S. Simon)
My right hon. Friend has received representations on this point and has undertaken to bear them in mind.

§ Mr. Nabarro
Yes, but is my hon. and learned Friend aware that four months ago I put this point to the President of the Board of Trade and that it is proving gravely detrimental to exports of British toilet preparations and the use of the most modern scientific containers, such as aerosol? As it is essentially a matter of interpretation and not change, would my hon. and learned Friend give a direction for the proper interpretation to be made at an early date?

§ Mr. Simon
No, Sir. I do not think it is a pure matter of interpretation, but my right hon. Friend has in mind what my hon. Friend has just said.

§ Mr. Nabarro
It is a very good point all the same.

§ 29. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware of a ruling by the Customs and Excise authorities that whereas tooth brush racks are only chargeable to Purchase Tax at 30 per cent. under Group 11, tooth brush holders which are personal to the user are chargeable at 90 per cent.; and what machinery exists to decide what tooth brush holders are personal to the user for the purpose of Purchase Tax charges.

§ Mr. Simon
Toothbrush racks are taxable at 15 per cent. They are bathroom fittings and are quite easy to distinguish from toothbrush holders, which are carrying receptacles.

§ Mr. Nabarro
Yes, but this invidious distinction gives preference to the communal use of toothbrushes which ought to be discouraged in the interests of personal hygiene. Has not the Treasury perceived that in all these years? Why should not toothbrush holders and racks 1384 be freed from Purchase Tax altogether as essential to personal cleanliness and hygiene?

§ Mr. Simon
I think that my hon. Friend is mixing up bathroom fittings and carrying receptacles.

§ 30. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that, whereas plan file chests are at present only liable to Purchase Tax at the rate of 5 per cent., plan file chests if combined with drafting tables are subject to tax at 30 per cent.; and whether this anomaly may be rectified at an early date.

§ Mr. Simon
Plan file chests combined with drafting tables are, like other office furniture, charged at 15 per cent., and not 30 per cent. In answer to the second part of the Question, I would refer my hon. Friend to the reply given to him on 19th November.

§ Mr. Nabarro
Whether the rate of tax be 15 per cent. or 30 per cent. is irrelevant. Is it not a fact that there is a distinction in the rates of tax as between a plan file chest sold by itself and one sold with a table? As both these articles of equipment can be used only in drawing offices and are items of capital equipment for industry, why should my hon. and learned Friend perpetuate what he was pleased last week to call "this damned nonsense"?

§ Mr. Simon
My hon. Friend's supplementary question rests on the false assumption that these articles can be used only for office equipment.