§ 54. Mr. Nabarroasked the Chancellor of the Exchequer to what extent the proposed changes in taxation and marketing arrangements, following the proposals affecting textiles, made by the Douglas Committee, will be extended to carpets and rugs; what minimum standards and specifications will be prescribed; whether his Department will consult the joint consultative organisation for the carpet industry in that regard; to what extent the lower priced range of carpets will now be sold free of Purchase Tax; and whether he will make a statement.
§ Mr. R. A. ButlerThere were no utility schemes for floor coverings and they are not therefore covered by the new Purchase Tax arrangements provided for in the Budget Resolutions.
§ 55. Mr. Adamsasked the Chancellor of the Exchequer how he distinguishes, for the purpose of Purchase Tax, between a fur-trimmed coat and a coat with detachable fur attached.
§ Mr. R. A. ButlerI am aware of the possible abuse of this tax relief in favour of fur-trimmed garments and am in consultation with the trade organisations concerned as to the best means of preventing it. I shall certainly take remedial action if this proves to be necessary.
§ 56. Mrs. Braddockasked the Chancellor of the Exchequer if he is aware that the outsize woman is being penalised under the D Scheme by having to pay more tax because of the larger size of her clothes; and if he will re-introduce the 7½ per cent., 15 per cent. and 22½ per cent. ceiling as in the utility scheme, so that 42-inch hip will be £2 3s., 44 and 46-inch, £2 6s. and 48-inch and upwards, £2 9s., respectively, before tax becomes payable.
§ 68. Mr. Doddsasked the Chancellor of the Exchequer if he is aware of the concern arising from the D Scheme which allows for the purchase of men's short pants for the thin athletic figure without Purchase Tax, but is not possible for the outsize man or the elderly who wear long pants; and, in view of the fact that this scheme taxes citizens because of their age or physical dimensions, if he will reconsider it.
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§ Mr. R. A. ButlerI fear that the suggestion that there should be separate D allowances for outsize garments and those of especial dimensions would unduly expand the scheme.
65. Mr. Leeasked the Chancellor of the Exchequer whether he is aware that Customs and Excise officials are insisting on the payment of the new rate of taxation on all bespoke tailoring orders taken prior to his Budget statement and collected after the operative date of 17th March; and if he will waive tax in these cases.
§ Mr. R. A. ButlerNo. Under the law, tax is payable at the rate in force at the time of delivery and I fear I could not sanction any departure from this rule.
§ 67. Mr. Burdenasked the Chancellor of the Exchequer if, in order to simplify operation of the D scheme, he will permit traders to show tax inclusive prices on their invoices.
§ Mr. R. A. ButlerI apprehend that the introduction of the D scheme has increased somewhat the work of calculating the tax, but I am afraid that the requirements of Revenue control and the legitimate interests of the retailers prevent me from acceding to my hon. Friend's request.