HC Deb 15 December 1970 vol 808 cc1091-2
1. Mr. Selwyn Gummer

asked the Chancellor of the Exchequer what rate of purchase tax is payable on plastic-covered display boards used in schools for showing geometric shapes.

The Minister of State, Treasury (Mr. Terence Higgins)

Not all such boards are within the scope of the tax. If my hon. Friend will let me have particulars of the case he has in mind I will send him a definite ruling.

Mr. Selwyn Gummer

Would my hon. Friend comment on the fact that all boards which show geometric shapes are subject to purchase tax but those which show circular graphs are not? Does not this indicate that it is time we abolished purchase tax on educational aids?

Mr. Higgins

I think that my hon. Friend will find that there are different rates of tax for different kinds of board, depending on their normal use. But it may depend on the items placed on the board, which are sometimes not taxed at the same time as the boards. However, if my hon. Friend will send me precise details, I will look into the matter.

3. Mr. Selwyn Gammer

asked the Chancellor of the Exchequer whether he will review the imposition of purchase tax on equipment used in schools and colleges.

22. Mr. Kenneth Marks

asked the Chancellor of the Exchequer if he will take steps to waive purchase tax on educational supplies to local authorities.

Mr.Higgins

Although there is no general provision for the relief of local authorities from indirect taxation, equipment which is of a kind principally used for educational purposes is catered for by a number of specific exemptions. A new category of projectors was added to these exemptions from 1st November this year, and the field is kept under review.

Mr. Selwyn Gummer

I welcome the comments of my hon. Friend. Would he help me to understand why many kinds of equipment used in schools are similar to equipment that is used outside and why education authorities such as the Inner London Education Authority have had to provide a great deal of extra money to make it possible to buy these items? Would he bear this matter in mind?

Mr. Higgins

This strikes at the fundamental principle of the tax, which is that it should be based on the nature of the product at the time when it is taxed, rather than on the end use.

Mr. Marks

Is the Minister aware of the considerable difficulties in the way of manufacturers who supply to Government Departments and who do not pay tax on these items, as compared with suppliers who indirectly supply Government Departments and the local authorities? Is he also aware that this is a matter in which there needs to be an extension of local authority spending? Will he examine the whole question in time for the Budget next year?

Mr. Higgins

I will bear in mind the hon. Gentleman's point, but there are exemptions for specific Government Departments. The local authorities are not included in that exemption because their purchases raise separate questions.