§ 25. Mrs. L. Jegerasked the Chancellor of the Exchequer what further consultations he has had with representatives of the jewellery trades regarding the imposition of Purchase Tax on secondhand jewellery; and what administrative arrangements he is making to deal with the collection of this tax.
§ The Economic Secretary to the Treasury (Mr. F. J. Erroll)My right hon. Friend and I received on 25th March a deputation representative of all sections of the trade, and we are considering what was said.
§ Mrs. JegerAs there is some confusion about this suggestion, will the Economic Secretary answer two questions? First, if a dealer buys at an auction, for instance, does he have to pay the tax then and again when he passes the jewellery to the retailer; and does the customer then have to pay again on the same article at the time of purchase? Secondly, what is the position of ordinary members of the public? For instance, a husband whose wife has died may dispose privately of a few quite modest articles of jewellery. How is such a person to know how much Purchase Tax is to be paid and to whom to pay it?
§ Mr. ErrollThe tax would be paid by the dealer, provided that he is registered, on his sale to a retailer. Therefore, no tax would be paid by the dealer on acquiring an article from an auctioneer; nor would tax be paid by the relative of a deceased person on disposing of his or her jewellery.