§ 58. Colonel Crosthwaite-Eyre
asked the Chancellor of the Exchequer the estimated increase in receipts from Purchase Tax for the financial year 1950–51, in view of the rise of prices that has taken place since the introduction of the Budget.
§ Mr. Gaitskell
I would refer the hon. and gallant Member to the reply given to the hon. Member for Stafford and Stone (Mr. H. Fraser) on 28th November last.
§ 60 and 61. Mr. Redmayne
asked the Chancellor of the Exchequer (1) the amounts collected in Purchase Tax by each of the first, second and third rates during the first half of this fiscal year; and the amounts for the corresponding period of the previous year;
(2) the amounts collected in Purchase Tax by each of the first, second and third rates in the fiscal years 1945–46, 1946–47, 1947–48, 1948–49 and 1949–50.
§ Mr. Gaitskell
Since traders are not required to furnish separate particulars of Purchase Tax collected at the various rates, the exact amounts attributable to each rate are not known, but the estimated amounts are shown in the table below. It should be borne in mind that comparison of amounts of tax received at the various 3W rates in different periods is vitiated by changes which have been made from time
Financial Year Rates of Purchase Tax Tax Estimated yield at each rate Remarks Per cent. £m. 1945–46 16⅔ 28 The Finance (No. 2) Act, 1945, made certain changes in the Schedules of taxable goods. 33⅓ 62 100 28 1946–47 16⅔ 34 The Finance Act, 1946, made certain changes in the Schedules of taxable goods. 33⅓ 108 100 39 1947–48 16⅔ 35 The Finance Acts of 1947 introduced new rates of Purchase Tax and also made certain changes in the Schedules of taxable goods. 33⅓ 130 50 27 66⅔ and 75 5 100 39 125 10 1948–49 33⅓ 164 The Finance Act of 1948 revised the Schedules of taxable goods and reduced the number of rates of tax to three. Receipts in the first quarter of the financial year were still accruing at the rates in force in the previous financial year. 50 41 66⅔ and 75 43 100 31 125 12 1949–50 33⅓ 204 The Finance Act, 1949, made no changes in Purchase Tax. 66⅔ 46 100 42 which includes for the first six months: 33⅓ 93 66⅔ 21 100 17 1950–51 (first six months) 33⅓ 98 The Finance Act, 1950, reduced from 66⅔ per cent. to 33⅓ per cent. the rate of tax on motor cars with a retail value exceeding £1,280. 66⅔ 21 100 18
64. Mr. De la Bère
asked the Chancellor of the Exchequer whether he will now consider remitting the Purchase Tax on radio batteries for old age pensioners over 70 years of age.
§ Sir I. Fraser
asked the Chancellor of the Exchequer what Purchase Tax is payable on the material for the repair of lifebuoys.
§ Mr. Gaitskell
Cloth used for repairing lifebuoys is generally liable, in common with other tissues and fabrics, to Purchase Tax at the rate of 66⅔ per cent. of its wholesale value. I understand that about one yard is used to cover each buoy, and the tax would amount to a few shillings.4W
to time, both in the rates of tax and in the schedules of chargeable goods.