§ 37. Mr. Nabarroasked the Chancellor of the Exchequer why oil, gas and electrical domestic space and water heating appliances are required to pay Purchase Tax at 25 per cent. whereas solid fuel space and water heating appliances pay no Purchase Tax.
§ The Economic Secretary to the Treasury (Mr. Anthony Barber)My right hon. and learned Friend's predecessor explained on 21st May, 1958, in Committee on the Finance Bill of that year the considerations that led him to impose tax at the same rate on oil, gas and electric heaters. Solid fuel heaters have been exempt for many years and the withdrawal of that exemption was not thought to be justified.
§ Mr. NabarroWill my hon. Friend represent to the Chancellor of the Exchequer that this illogicality has now persisted for 15 years? As the policy of Her Majesty's Government is free competition among all forms of fuel in the domestic market, why is an onerous burden placed on three out of four of the alternatives and the fourth exempted?
§ Mr. BarberI assume that my hon. Friend is not seeking to correct the disparity by imposing Purchase Tax on grates, fireplaces and solid fuel stoves and that he is, therefore, seeking a reduction of Purchase Tax on the other appliances. He will understand that this is not a matter on which I can comment at this time.