§ LORD BROUGHSHANEMy Lords, I beg to ask His Majesty's Government the question standing on the Order Paper in my name.
§ [The question was as follows:
§ To ask His Majesty's Government, whether their attention has been called to the fact that under regulations following the recent Budget heavy increased taxes are being imposed on goods of all kinds which have been purchased and paid for and the necessary coupons handed over, if the goods in question have not been actually delivered to the purchasers, thereby materially increasing the sum agreed to be paid for such goods merely because delivery has not been effected.]
THE CHANCELLOR OF THE DUCHY OF LANCASTER (LORD PAKENHAM)My Lords, it is necessary when taxes and duties on goods are increased that such increase should have immediate effect, otherwise, as experience shows, there is liable to be a considerable amount of forestalling. The recent increases of Purchase Tax, like the increased duties on liquor, were therefore given immediate effect; and under the legal provisions governing Purchase Tax, the increased rates apply if the goods had not been delivered by the registered supplier before the operative date of the change. It is appreciated that in many cases the goods will have been ordered and possibly paid for at an earlier date, but this does not affect the legal position, and I am afraid that it would be quite impossible to make exceptions on those grounds.
§ LORD BROUGHSHANEMy Lords, are His Majesty's Government aware that I hold in my hand a circular sent out by a trade association to all their retailers pointing out that the increased tax is chargeable on all goods delivered on and after November 13, even though the goods have been paid for? Do the Government not recognize the inconvenience and, in the case of people not very well off, the hardship which is caused when they have arranged to have, say, a coat or a suit or whatever it may be, delivered for a fixed price and they then have to pay more? In my own case, I ordered an overcoat for which I was to pay £25 and I have since received an intimation that I now have to pay an additional sum of £2 13s. 6d. While this is annoying to me I can no doubt afford it, but to many people it would mean a considerable hardship to have to pay several pounds more for a thing for which they had contracted to pay a given price. Do not the Government think that something ought to be clone in the matter, when the agreed price of goods is increased on the sole ground that though paid for they have not been actually delivered?
LORD PAKENHAMThe Government would always gladly assist the noble Lord in respect of any special hardship which he suffered, but I am afraid that in this matter he is simply experiencing difficulties such as have become the lot of everyone in the country.
§ LORD BROUGHSHANEDo not the Government recognize that it is not for my own sake but for the sake of poorer people that I have raised this matter? I know of a particular case of a certain person who is not well off and who will suffer considerably through having to pay another pound or so in addition to what he had contracted to pay for a suit of clothes.
LORD PAKENHAMI can only reply to the noble Lord by repeating what I have already said. We are simply following the general rule in this practice. If the noble Lord wishes to discuss this matter at greater length he will, no doubt, put down a Motion.