§ 4. Mr. David Steelasked the Chancellor of the Exchequer whether he will consider reducing the 45 per cent. purchase tax on deerskins tanned with the hair on to 11¼ per cent. which is the rate for comparable sheepskins, as a measure to promote rural industry in Scotland; and if he will state the total revenue from this source for the last available year.
§ The Chief Secretary to the Treasury (Mr. Maurice Macmillan)The 45 per cent. rate has now been reduced to 25 per cent. which should be of some help to this rural industry. Separate totals for revenue from this source are not available.
§ Mr. SteelWould the right hon. Gentleman accept an estimate of probably about £4,000 as being the total revenue from this source? Is he aware that the two companies which have been operating in this field went into liquidation last year, that the business is becoming unprofitable, and that there is no logic in having a reduction of 25 per cent. Since this is still higher than the comparable rate for sheepskins?
§ Mr. MacmillanYes, I accept that this is an anomaly. One of the reasons for introducing V.A.T. at one rate was to get rid of this sort of anomaly.