§ 20. Mr. Nabarroasked the Chancellor of the Exchequer what will be the loss of revenue in the current year, and in the ensuing full year, in respect of his announcement to remove grass cutters and lawn mowers from Purchase Tax; and what compensatory revenue benefits will derive in equivalent financial years from the imposition, also announced by him recently, of Purchase Tax on fireworks and why such Purchase Tax action was taken simultaneously for fireworks, grass cutters and lawn mowers.
§ Sir E. BoyleBecause the tax is collected in arrear, receipts in the current financial year will not be affected. For a full year the figures will be about £1¼ million for mowers and between £1½ and £1¾ million for fireworks. Both trades are seasonal and this was the opportune time for the changes.
§ Mr. NabarroOn fireworks, can my hon. Friend say whether there is to be an exemption for rockets used by ships in distress at sea or by lighthouses? On the general point, can he tell the House whether this spate of Purchase Tax changes so near to the Budget presages or denies a general reform of the Purchase Tax in April next?
§ Sir E. BoyleIn reply to the second half of that supplementary question, I cannot anticipate my right hon. and learned Friend's Budget statement. In reply to the first part, I suggest that my hon. Friend put down a Question or write to my hon. Friend the Economic Secretary or myself about it.
§ Mr. NabarroIn this important context, did my hon. Friend remember the matter of Very lights as well as rockets?
§ Sir E. BoyleI am sure that all these relevant matters were borne in mind.