§ 14. Sir G. Nabarroasked the Chancellor of the Exchequer why he has classified cosmetics as the most luxurious of consumer goods and increased Purchase Tax on them by 82 per cent. from 27½ per cent. to 50 per cent., and having regard to the fact that 97 per cent. of all adult females use cosmetics and 72 per cent. of all adult males, whether he will now regard cosmetics as essentials and reduce Purchase Tax on them to 20 per cent. as for soft drinks.
§ Mr. Harold LeverIn a Budget in which it was necessary to propose extensive increases in indirect taxation, cosmetics could not be excluded from the range of less essential goods now subject to the 50 per cent. rate of purchase tax.
§ Sir G. NabarroBut does the Minister realise that his rearrangements of Purchase Tax are entirely retrogressive in that they are widening the gulf between articles most extensively in demand for ordinary and necessary every-day usage, and the most sumptuary articles? Why should he tax cosmetics at 2½ times as much as soft drinks?
§ Mr. LeverCosmetics must be regarded as among the less essential, though very commonly used, articles, and the rate of tax seems appropriate in the circumstances of this year's Budget.
§ Mr. Ronald AtkinsDoes my hon. Friend agree that it would be more appropriate to bring the Purchase Tax nearer the tax on whisky since those who drink cosmetics are drinking spirits rather than Coca Cola?