§ 55. Sir G. Nabarro
asked the Chancellor of the Exchequer whether he is aware that, whereas Purchase Tax on sweets and confectionery is 15 per cent., the value of the glucose and sugar content in 12 toffee apples, excluding natural juices in the apples, is sixpence and that fivepence Purchase Tax is being charged on this sum, representing an effective rate of Purchase Tax on 83⅓ per cent.; why toffee apples have been selected for this rate of Purchase Tax at more than five times the sweets and confectionery rate of 15 per cent.; what is his estimate of revenue from Purchase Tax on toffee apples in 1962–63; why apples are being taxed as toffee apples; and whether he will make a statement.143W
§ Mr. Maudling
The tax on sweets and similar confectionery is charged at the uniform rate of 15 per cent. of the wholesale value, irrespective of their glucose or sugar content. This applies to toffee apples just as it does to other confectionery. It is not possible to make a separate estimate of the revenue from toffee apples.
§ 56. Sir G. Nabarro
asked the Chancellor of the Exchequer whether he is aware that the Purchase Tax levied under Customs and Excise Notice 78A on slacks, shorts, trousers, jeans, riding breeches and jodhpurs varies according to the nature of the material used, particularly with regard to the extent to which it can be stretched and that this causes confusion in the trade and loss to the revenue; and if he will take steps to ensure uniformity in this matter.
§ Mr. Maudling
There is a problem here, arising out of the exemption from tax of young children's clothing. The Customs and Excise have just put to the trade new proposals designed to clarify and improve the lines of demarcation.