§ 16. Sir B. Jannerasked the Chancellor of the Exchequer on how many occasions his power has been used during the past five years to increase or decrease Purchase Tax by Order between Budgets.
§ Mr. BarberSixteen; thirteen of the Orders were for additions to the exempt list of essential drugs and medicines.
§ Sir B. JannerWould the hon. Gentleman say how these powers will now be related to the new powers being taken in regard to all forms of Customs and Excise duties in periods between Budgets?
§ Mr. BarberThe existing power to which the hon. Member's Question referred has been used only either for dealing with the exempt list of essential drugs and medicines, or for clearing anomalies of classification, whereas the power which the Chancellor seeks in Clause 8 of the Finance Bill is for an entirely different purpose. I gather, Mr. Speaker, that we are likely to be considering that later today.
Mr. Gresham CookeOught not these powers to alter Purchase Tax to be taken more frequently than sixteen times in the last five years? Before every Budget there is a hold-up in the selling of goods while people are considering whether Purchase Tax is to be altered. Should not these alterations take the public unawares and be made not at Budget time?
§ Mr. BarberThat, I think, raises a wider question. It has certainly been considered by my right hon. and learned Friend and his predecessors on a number of occasions, but they have reached the conclusion that, generally speaking, it is better to make any changes in Purchase Tax of a specific nature at Budget time. Consequently, the power referred to in the Question has been used only for dealing with anomalies or with this special case of the exempt list of essential drugs and medicines.