HC Deb 16 February 1960 vol 617 cc104-5W
56. Mr. Nabarro

asked the Chancellor of the Exchequer what further representations he has now received for removal of Purchase Tax on musical instruments; and, having regard to widespread concern expressed about this form of taxation upon culture, education, and recreation, what steps he proposes to take.

Mr. Amory

The National Music Council has renewed its previous representations. As to the second part of the Question, I can assure my hon. Friend yet again that one step I do not propose to take is to anticipate my Budget Statement.

57. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that an electrical pick-up for a guitar attracts Purchase Tax at the rate of 25 per cent., as does the guitar, whereas an amplifier to which the electrical pick-up is connected is not subject to tax at all; why this discrimination exists between a guitar pick-up and an amplifier for a guitar pick-up; and whether he will redress grievances expressed by musicians by removing both pick-ups and amplifiers from the Purchase Tax Schedule when used in conjunction with guitars.

Mr. Amory

The distinction exists because the tax applies to musical instruments and their parts and accessories; and this does not normally include amplifiers of this type. I am not aware that the distinction gives rise to grievances.

Mr. Nabarro

asked the Chancellor of the Exchequer what part of his total revenue for the year 1959–60 he estimates will be derived from Purchase Tax; how this compares with the yield from Purchase Tax of £290 millions in 1950–51, representing 7 per cent. of total revenue and the yield from Purchase Tax in 1958–59, representing 10 per cent. of total revenue; and whether a further increase is expected by his Department in the present year 1959–60.

Mr. Amory

My Budget estimate of £471 million for receipts of Purchase Tax in 1959–60 represents 8.8 per cent. of the total estimated revenue. For the years 1950–51 and 1958–59, receipts of Purchase Tax represented 7.6 per cent. and 9.1 per cent. of total revenue respectively. As regards the last part of the Question, my hon. Friend must wait until the figures are available at the end of the financial year.