HL Deb 27 July 1955 vol 193 cc1072-3
LORD CROOK

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government by what regulation, enactment, or authority Her Majesty's Customs have been able to rule that in future purchase tax on tabulating cards, previously calculated at 25 per cent. of 75 per cent. of the selling price exclusive of tax, shall be calculated, from the 1st July, 1955, at 25 per cent. of 85 per cent. of the selling price exclusive of purchase tax, and what is the justification for this further increase in costs to be imposed on public boards, local authorities, and industrial producers.]

THE EARL OF SELKIRK

My Lords, purchase tax in respect of tabulating cards, as indeed on all other goods, is calculated on the wholesale price. Difficulty arises when there is no sale by wholesale. In such eases, under Section 21 of the Finance (No. 2) Act, 1940, the wholesale value is determined as the price which, in the opinion of the Commissioners, these goods would fetch in the wholesale market. In revising their assessment the Commissioners are fulfilling the duties imposed on them by Statute.

LORD CROOK

My Lords, while thanking the noble Earl, may I ask whether he is aware that the new decision imposes a large-scale charge upon industry, at a time when it can little afford it in competition in the export market?

THE EARL OF SELKIRK

My Lords, I am sure that what the noble Lord says is, within certain limits, correct. None the less, the Commissioners have no alternative but to fulfil the duties which are imposed on them. I can assure the noble Lord that this decision has been reached only after extensive negotiation extending over many months.

VISCOUNT ALEXANDER OF HILLS-BOROUGH

My Lords, having given us so much information, for which we are obliged, can the noble Earl tell us what is the margin allowed by the Customs Commissioners for the assumed wholesale operation?

THE EARL OF SELKIRK

That is in the Question: the margin is 15 per cent.

VISCOUNT ALEXANDER OF HILLS-BOROUGH

Fifteen per cent.: that is the one?

THE EARL OF SELKIRK

Fifteen and eighty-five.

VISCOUNT ALEXANDER OF HILLSBOROUGH

I was not sure about that.