§ 96. Mr. Nabarroasked the Chancellor of the Exchequer for what reason busts are subjected to Purchase Tax at 30 per cent. unless specially designed for the display of wearing apparel or comprised in 154W any group other than Group 25; under what other groups busts are subject to Purchase Tax; and at what rates.
§ Mr. ErrollBecause that is the rate of tax which applies to domestic ornaments generally. Busts, as such, are not taxable except under Group 25.
§ 97. Mr. Nabarroasked the Chancellor of the Exchequer when the trade organisations concerned first made representations to him with regard to the ruling of the Customs and Excise authority that Alice bands should be liable to Purchase Tax at the rate of 30 per cent.; on what grounds it was decided that the rate should be reduced to 5 per cent.; and whether, in connection with the decision that these bands will still be chargeable to tax at 30 per cent. if decorated with semi-precious stones, he will provide a list of the stones which are regarded as semi-precious for this purpose.
§ Mr. ErrollNo such representations were made. It was decided after consultation with the trade, that these bands should be treated as minor articles of apparel entitled to the benefit of the 5 per cent. rate, notwithstanding the incorporation of imitation stones or pearls.