§ 41. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that, in general, all those British industries whose products are subjected to high rates of Purchase Tax such as 60 per cent. and 30 per cent. suffer severely as regards production and distribution efficiency during the period of January to April each year because the shops and the shopping public are inclined to hold off buying in the hope that appreciation of the country's economic needs will persuade him to reduce these high levels of Purchase Tax in his Budget; and if he will give this consideration priority in connection with his future arrangements for amending the Purchase Tax Schedule of the Finance Act, 1958.
The Chancellor of the Exchequer (Mr. Derick Heathcoat Amory)My hon. Friend must not over-state this problem. Nor must he expect me to anticipate my Budget decisions.
§ Mr. NabarroHas not my right hon. Friend read the national newspapers today? Is he aware that three more large and famous trading firms, Harrods, Cannon (Holdings) Ltd., and Lewis Investment Trust, Limited—added to Leyland Motors, Limited, and Jaguar Cars, Limited, last Thursday—have all protested in the most vigorous terms on the very point which is enshrined in this Question? Will my right hon. Friend bow to the overwhelming volume of industrial and commercial opinion, which supports me in these matters, against his own minority view?
Mr. AmoryI think my hon. Friend must agree that his own modest activities in these matters—not that I am quarrelling with him in any way—have made a small contribution towards keeping alive in the breasts of business men some anxieties about the theoretical, hypothetical and highly speculative possibilities of Budget action in this field.
§ Mr. Gordon WalkerCould the right hon. Gentleman tell us which of the concerns mentioned by the hon. Member for Kidderminster (Mr. Nabarro) have raised their dividends?
§ Mr. NabarroThat is thoroughly irrelevant, of course.
§ 42. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware of the ill-feeling caused amongst the people of Wales by the levy of Purchase Tax at 30 per cent. on the national musical instrument of their country, the harp, whilst pianos and other similar instruments have for many years been free of such tax; and what steps he proposes to take in the near future to ensure that the importance of dealing with this matter sympathetically at an early date is properly appreciated by Her Majesty's Government.
§ Mr. NabarroWhile having no special partiality or solicitude for the people of Wales, may I ask my right hon. Friend whether he will again apply himself to the fact that Welsh harps, bagpipes, trumpets and horns all carry Purchase 1116 Tax at 30 per cent. whereas pianos carry none?
§ Mr. NabarroWhy should my right hon. Friend discriminate in this invidious fashion?
Mr. AmoryI should like to assure my hon. Friend that there is no racial discrimination here. Bagpipes carry the same rate of 30 per cent.
§ Mr. NabarroThat is exactly what I said.
§ 43. Mr. Nabarroasked the Chancellor of the Exchequer approximately what percentage of the total revenue is represented by the current yield of Purchase Tax; and what such percentage would be if all goods liable to tax at 60 per cent. became liable to tax at 30 per cent., and if the 30 per cent. tax were abolished on goods liable to such rates on Groups 12, 19 (a), 26 (b), 27 and 28.
Mr. AmoryThe Budget estimate of £490 million for the yield of Purchase Tax in the current financial year represented 9 per cent. of the estimated total ordinary revenue of £5,439 million. As regards the second part of the Question, the Purchase Tax estimate included about £209 million in respect of goods chargeable at 60 per cent. and about £88 million in respect of the 30 per cent. goods mentioned by my hon. Friend. It is not the practice to publish any revision of Budget estimates in the course of the financial year.
§ Mr. NabarroIs my right hon. Friend aware that this is the 194th Purchase Tax Question from myself in the 1958–59 series? Are his Answers considered to be sufficiently provocative to cause me to proceed with a further century in the next Parliamentary Session?
Mr. AmoryI realise that for my hon. Friend this is the last shoot of the season, and, because I am very anxious that he should not go home without something in the bag, I should like to assure him that, in the review of taxation Which I am now in the course of making, I shall give full consideration to his views.
§ 57. Sir H. Lucas-Toothasked the Chancellor of the Exchequer if he will 1117 give the comparable monthly or other figures for receipts from Purchase Tax on shopping bags, shopping baskets, and handbags, respectively, before and after the changes effected by the last Budget.