§ Flight-Lieutenant Etherton
asked the President of the Board of Trade whether it is still the policy of the Government not to permit retailers to make a profit on the Purchase Tax; whether he is aware that profit allowance on many articles is being calculated after aggregating cost price and Purchase Tax, so that a purchaser pays the retailer a profit on the Purchase Tax as well as on the article itself; and whether he will take steps to stop such a practice?
§ Mr. Dalton
Yes, Sir. In general, retailers are not permitted to take a percentage margin of profit on a price including Purchase Tax. I assume that the second part of the Question relates to utility clothing. For reasons of practical940W convenience the margins allowed to retailers on utility clothing are expressed as a percentage margin on the price inclusive of Purchase Tax paid to the wholesaler or manufacturer. This does not mean that the maximum prices for such clothing are any higher than they would be if the margins were calculated in some other way.