§ 6. Mr. Dempseyasked the Chancellor of the Exchequer why the Purchase Tax on anglers' umbrellas is fixed at different rates; and if he will make a statement.
Mr. M. MacmillanThe rate of Purchase Tax on anglers' umbrellas is 25 per cent. I am aware of the anomaly which the hon. Member has in mind; it arises because garden umbrellas, like garden furniture in general are taxed at the rate of 10 per cent.
§ Mr. DempseyMay I ask the hon. Gentleman whether he is aware that the document published by the Anglers' Association depicts this type of umbrella 778 being us(id by anglers? Is it not ludicrous that one colour should bear a 10 per cent. tax, while another colour bears a 25 per cent. tax? Should not we get a clear answer to end this ludicrous situation and ask the Minister to stop angling?
Mr. MacmillanThere is an anomaly. It arises from the definition of garden umbrellas, which was agreed with the trade association. The simplest and most direct method of removing the anomaly is to classify garden umbrellas as umbrellas, and not as garden furniture, rater than the reverse.