§ Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that the packages, containers, bottles and aerosols in which toilet preparations are packed, are subject to 50 per cent. Purchase Tax; and as export trade in toilet preparations is subject to strong competition, and as in this field the maintenance of a high standard of presentation and packaging is indispensable, if he will eliminate Purchase Tax on packages altogether.
§ Mr. BarberThe export trade is, of course, free of Purchase Tax. What the consumer buys is the product in an appropriate container and the costs incurred in providing the container and in packing the goods in it are normally reflected in the open market value of the goods. The tax must be based on this value.
§ Mr. Nabarroasked the Chancellor of the Exchequer whether he will state the extent to which the annual vote for the National Health Service would be reduced by the elimination of Purchase Tax on medicines and drugs prescribed within the National Health Service; and why Purchase Tax is charged on goods provided by a Government service extensively financed by Parliamentary Vote.
§ Mr. BarberThe ultimate destination of the goods is not usually ascertainable when the tax becomes chargeable on them. As to the rest of the Question, I would refer my hon. Friend to the 59W reply given by my right hon. and learned Friend the Member for Hertfordshire, East (Sir D. Walker-Smith) on 7th March, 1960.