§ 28. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what rate of sales tax would be necessary, excluding food and items like alcoholic drink, tobacco and petrol, already subject to other taxes, in order to yield the same revenue as the present rates of Purchase Tax; and what flat rate of Purchase Tax, on the same items, would be required to yield the same result.
§ Mr. BarberAbout 12 per cent. and 16 per cent. respectively.
§ Mr. DigbyWill my hon. Friend say whether, in his opinion, in addition to other difficulties, the cost of collecting a sales tax would be abnormally high?
§ Mr. BarberThe question of a sales tax was considered very carefully by my right hon. and learned Friend's predecessor and, in his Budget statement in 1958, he dealt with it at some length and explained why he did not think that a sales tax would be proper.