HC Deb 25 January 1962 vol 652 cc384-5
11. Mr. Gresham Cooke

asked the Chancellor of the Exchequer whether he will remit Purchase Tax on Formula racing cars not designed to go on the roads or to carry passengers, so as to assist manufacturers of such cars to compete in international races.

Mr. Barber

No, Sir. I would remind my hon. Friend of the statement of the Government's policy on this matter which was given to him by my hon. Friend the Parliamentary Secretary to the Board of Trade in reply to his Question on 19th December.

Mr. Gresham Cooke

Is it not rather ridiculous to levy Purchase Tax on a racing car that is not a motor car in the accepted sense of the word and which does not carry passengers? Would it not be a great help to our racing car manufacturers internationally against competitors who do not have to carry Purchase Tax if it were not levied on racing cars?

Mr. Barber

The Commissioners of Customs and Excise are advised that as a matter of law racing cars are liable to tax under the relevant Schedule. [HON. MEMBERS: "Change the law."] Hon. Members opposite say "Change the law", but that is clearly a matter for the Budget. Wider questions are involved and I do not think it unreasonable to expect the motor industry to support motor racing if it considers that to do so would result in benefit to the industry.

Mr. Jay

Will the hon. Gentleman note in this connection that the Labour Government exempted the Land Rover from Purchase Tax to assist exports and on the ground that it was not a normal motor car?