§ 70. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that Note 7 of Notice No. 78 relating to goods chargeable with Purchase Tax declares that the sale of a taxable article in parts does not affect its liability and that tax cannot be avoided by such a method; and whether, in view of his recent decision that the Fairthorpe Zeta sports car if supplied in separate parts to be made up by the purchaser, is not liable to Purchase Tax, he will review and modify the terms of the Note in question.
The particular case mentioned involved considerations beyond those dealt with in Note 7. That Note is of general application and remains valid.
§ 71. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that, although a gymnasium coconut mat is chargeable as floor covering at the Purchase Tax rate of 12½ per cent. under Group 9, it is also chargeable at the rate of 25 per cent. under Group 20 as a sports requisite, and that the latter rate accordingly applies; and whether, in view of the desirability of encouraging gymnasium activities, he will rule in the near future that the same rate of tax shall be applied to gymnasium mats as to other floor coverings.
No. The law requires that where goods are chargeable at more than one rate, tax is to be chargeable at the higher or highest of those rates.
§ 72. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that customers inquiring about the price of ladders 11 or 12 feet long, are frequently advised to have a 12 feet ladder, since it is several shillings cheaper than an 11 feet ladder, owing to the fact that ladders up to 11 feet are held to be objects for domestic use and therefore subject to Purchase Tax at the rate of 12½ per cent.; and when he proposes to dispose of this anomaly.
If we are to avoid taxing all industrial ladders we must draw a line somewhere, and I have no evidence that there is any better point than 12 feet at which to draw it.33W
§ 74. Dr. A. Thompson
asked the Chancellor of the Exchequer if he will reduce the 33⅓ per cent. Purchase Tax on pipe band kilts and uniforms and accessories.
The hon. Member is misinformed. There is no 33⅓ per cent. rate of Purchase Tax. The rate applicable to kilts and uniforms is 5 per cent.