HC Deb 17 February 1959 vol 600 cc190-3
44. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that a few feet of polythene tubing, with an appropriate dowel, may be sold free of Purchase Tax, whereas a hula hoop is subject to Purchase Tax; and, in view of the desirability of increasing the sale of hula hoops as an encouragement to personal fitness, whether he will now relieve factory-made hula hoops from Purchase Tax, thus placing them on terms of parity with home-made hula hoops constructed from polythene tubing and a dowel.

The Chancellor of the Exchequer (Mr. Derick Heathcoat Amory)

Hula hoops are taxable if supplied complete or ready for assembly. I see no justification for treating them differently from other toys.

Mr. Nabarro

Why are they taxed as toys at all? Why should they not be regarded as, for instance, sports requisites? Is there not a direct relation between a hula hoop and a tyre, and, as neither tyres nor inner tubes are taxed, why are hula hoops taxed?

Mr. Amory

My hon. Friend, in his enthusiasm for personal fitness, seems to share the enthusiasm for the hula hoop of Mr. Flook in today's Daily Mail.I can quite understand it, because he enjoys being at the centre of things.

60. Mr. Nabarro

asked the Chancellor of the Exchequer why Purchase Tax is paid on musical instruments purchased by the Brigade of Guards but not on musical instruments purchased by the band of the Royal Air Force and the band of the Royal Marines; and why he is exercising discrimination in favour of the Royal Air Force and Royal Marines, having regard to the need for a high level of recruiting for all the corps named.

Mr. Amory

There is no discrimination. For historical reasons the Services have differing ways of achieving the same result. Army bands receive a cash allowance from public funds to maintain and replace their instruments, and that allowance takes account of Purchase Tax.

Mr. Nabarro

Is my right hon. Friend aware that the National Music Council has constantly drawn attention to the fact that this discrimination exists and that the Customs and Excise have been deliberately collecting Purchase Tax on musical instruments used by the Brigade of Guards Band but not on those used by the bands of other corps? Would he not undertake to examine this matter again? Surely, such a large body of professional opinion cannot constantly be wrong in the matter.

Mr. Amory

If my hon. Friend studies my reply, he will see that there is no discrimination, because where cash grants are made the level of the grants takes account of the fact that Purchase Tax will be payable on the instruments themselves. But I understand my hon. Friend's interest in anything that affects the production and the propagation of sound.

Mr. Nabarro

Would my right hon. Friend include in his researches the fact that any regimental band buying a bugle pays no tax upon it, but if a cornet is bought for the same regimental band it bears tax at 30 per cent.? Would my right hon. Friend comment on that thoroughly unsatisfactory position.

Mr. Amory

I will investigate that point and write to my hon, Friend.

Mr. Nabarro

I am grateful to my right hon. Friend.

61. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that traders have requested Customs and Excise to define when an advertising leaflet, which is not fully printed, is chargeable with Purchase Tax, and that Customs and Excise have stated they are unable to do so; and, in view of the confusion thus caused, especially having regard to wide variety of designs, some of which attract Purchase Tax and others of which do not, whether he will now exempt from Purchase Tax all advertising leaflets as being essential requisites of industry, trade, and commerce.

Mr. Amory

As I told my hon. Friend on 10th February, the Customs and Excise are, at the trade's request, reviewing the criteria of tax liability in this part of the stationery field. Partly printed advertising leaflets are included in this review.

Mr. Nabarro

Would my right hon. Friend have some regard to the fact that at the 1955 General Election more than 600 Members of the House put out advertising leaflets in the form of election addresses, some of which attracted Purchase Tax on account of the fact that the Customs and Excise said that they were advertising leaflets part-printed, whereas others did not? Is not this a thoroughly invidious state of affairs, and will not my right hon. Friend, in the interests of Tory candidature, put the matter right before the next General Election?

Mr. Amory

In the interest of justice, I will have regard to all appropriate considerations, but at this stage I am not quite prepared to say whether or not my hon. Friend's observations fall within that category.

63. Mr. Tiley

asked the Chancellor of the Exchequer if he will give consideration to the early removal of Purchase Tax on dustbins since they are an essential part of domestic hygiene.

62. Mr. Hirst

asked the Chancellor of the Exchequer why Purchase Tax is charged on dustbins; and whether he will give consideration to the early removal of this tax.

Mr. Amory

Dustbins are taxed under the provisions which apply Purchase Tax to domestic ironmongery and hardware generally. My hon. Friends will not expect me to anticipate my Budget decisions.

Mr. Tiley

I ought to say that I appear in this field only by kind permission of my hon. Friend the Member for Nabarro. [Laughter.] Would my right hon. Friend bear in mind that this type of concession would benefit public health, increase trade and reduce the cost of living?

Mr. Amory

As to the first part of my hon. Friend's observations, apart from his other distinctions, his name will now be honourably linked with dustbins. As to the second part of the question, I fear that I must not anticipate my Budget statement.

65. Mr. Hector Hughes

asked the Chancellor of the Exchequer what is the total amount collected for Purchase Tax on gramophone records.

Mr. Amory

Just under £6 million in the financial year 1957–58.

Mr. Hughes

In view of the great educational value of many gramophone records, would the right hon. Gentleman consider reducing or abolishing the tax on educational records and put these records in the same category as books?

Mr. Amory

I am giving very careful consideration, of course, to all aspects of these difficult problems.