HC Deb 08 June 1943 vol 390 c546W
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.