§ Mr. Pearson
asked the President of the Board of Trade whether it is a permissible charge of profit for retailers to base the basic profit upon the cost of a garment plus Purchase Tax, instead of upon the cost of the garment only?
§ Mr. Dalton
No Purchase Tax is payable on utility clothing, But, in maximum price Orders relating to non-utility clothing, the retailers' gross margin is at present expressed as a percentage of the price paid for the goods, including Purchase Tax. As I have already announced, however, such margins will in future be expressed as a percentage of the price paid, excluding Purchase Tax. These Orders will be amended accordingly, as and when the margins come up for revision.