HC Deb 29 March 1960 vol 620 cc117-8W
79. Mr. Nabarro

asked the Chancellor of the Exchequer why clothes are generally subject to Purchase Tax at 5 per cent. whereas carpets attract Purchase Tax at 12½ per cent., both being integral parts of the textiles group.

Mr. Amory

I dealt with the reasons underlying the scheme of Purchase Tax rates during the passage of the last two Finance Bills. Neither the 5 per cent. tax on clothing nor the 12½ per cent. tax on floor coverings is confined to textile articles.

80. Mr. Nabarro

asked the Chancellor of the Exchequer how many different rates of Purchase Tax are applicable to the products of the toilet preparations and cosmetics industry; whether the packages invariably attract Purchase Tax; and, having regard to inequalities in this field, what steps he proposes to take to secure appropriate reform and uniformity.

Mr. Amory

The applicable rates are 25 per cent. and 50 per cent. of the wholesale value which includes the value of any container. I do not propose to anticipate my Budget statement.

Mr. Nabarro

asked the Chancellor of the Exchequer why the domestic bath attracts no Purchase Tax whereas special bath accessories for elderly and infirm persons and invalids, such as bath assistance rails and bath seat-aids attract Purchase Tax at the rate of 12½ per cent., and a bath seat at the rate of 5 per cent. Purchase Tax; and why these categories of aids are subject to Purchase Tax at different rates.

Mr. Amory

The bath is a builder's fixture; the other articles named are chargeable as domestic hardware or toiletware, but of course chairs and seats are chargeable at 5 per cent. only.

Mr. A. Lewis

asked the Chancellor of the Exchequer if he will state the type of goods now in the group carrying the lowest Purchase Tax level; and how much he estimates the Treasury would lose in revenue if this group of items were freed from Purchase Tax.

Mr. Amory

Clothing and furniture; my Budget estimate for Purchase Tax included approximately £55 million in respect of goods liable at this rate.