§ 76. Mrs. Mannasked the Chancellor of the Exchequer if he is aware that Purchase Tax of £12 5s. 9d. on a dress costing £64 5s. 9d. is insufficient to discourage inflationary tendencies; and if he will take steps to increase steeply the Purchase Tax on all luxury spending.
§ Mr. JayIn this and other similar cases the Purchase Tax helps to avoid inflation by discouraging excessive spending and by producing a substantial amount of revenue; I will, however, note my hon. Friend's suggestion.
79. Mr. E. P. Smithasked the Economic Secretary to the Treasury, whether he will remove the Purchase Tax on the skins of home-killed grey squirrels in order to encourage their destruction because of the damage they cause to woodlands, nut plantations and orchards, and in view of the fact that their flesh makes excellent eating.
§ Mr. JayNo. So long as Purchase Tax remains chargeable on fur skins as a class, I cannot make concessions for particular skins, even for the purpose mentioned by the hon. Member. Moreover, an exemption for home-produced skins would involve discrimination against imported skins, contrary to various trade agreements.