HC Deb 01 May 1961 vol 639 cc904-5
42. Mr. Lindsay

asked the Chancellor of the Exchequer whether, so that United Kingdom sales of motor cars to United States service men can continue, he will seek an alternative method for the control of Purchase Tax exemption in place of the existing method under which exemption for a period exceeding one year can only be obtained if the order is placed through PX.

The Economic Secretary to the Treasury (Mr. Anthony Barber)

The history of this matter goes back to 1949. My right hon. and learned Friend has written to my hon. Friend setting out the Government's views at length.

Mr. Lindsay

Is my hon. Friend aware that I am very much obliged to the Chancellor of the Exchequer for the very full letter he wrote to me when he saw my Question on the Order Paper? Is my hon. Friend aware that the point is that while the twelve months exemption is adequate in the case of the American Service man who can take the car back to America with him and not pay Purchase Tax, it is quite useless for those who are over here for two or three years and who will not, therefore, take the British car and pay Purchase Tax when they can take an American car without Purchase Tax or duty? Therefore, not only because we want these sales to go up but because of their good advertisement value, would my hon. Friend be good enough to ask his right hon. and learned Friend to look closely into the matter?

Mr. Barber

As my right hon. and learned Friend has explained to my hon. Friend the Member for Solihull (Mr. Lindsay), the provision in Section 22 of the Finance Act of 1946 concerning temporary residents in this country who wish to purchase motor cars here but intend to export them was an exceptional provision. To extend the period of such use beyond one year would really be a major extension of what is, as I say, already an exceptional provision. As at present advised, my right hon. and learned Friend does not feel able to agree to such an extension. I am sorry that I do not feel able to go any further than that, but my right hon. and learned Friend shares the concern of my hon. Friend at the action that has been taken by the United States Government. I think the next thing is to see what will be the result of the approach that has been made to them.