HC Deb 12 March 1963 vol 673 cc133-4W
63. Sir G. Nabarro

asked the Chancellor of the Exchequer why the rosette denoting a bar on a Military Cross ribbon is subject to Purchase Tax and similarly on other decorations and awards, including Mention in Dispatches, and the Territorial Decoration, whereas the medal and ribbon are exempt; why this anomaly exists in terms of Commissioners of Customs and Excise Notice 78, Group 4, Page 14, January, 1963; and whether he will make a statement.

Mr. Barber

Medal ribbon emblems are taxable only when they are sold separately, and the reason why the statutory exemption from tax for the insignia of orders and decorations does not extend to medal ribbon emblems as such is that they are not necessarily distinguishable from other accessories to wearing apparel.

64. Sir G. Nabarro

asked the Chancellor of the Exchequer whether he is aware that by sending printed literature abroad for posting back to this country, Purchase Tax is avoided on printing and stationery; that British firms, by having their printing and stationery executed overseas also avoid Purchase Tax by individual reposting by mail order; and that such practices, largely to avoid Purchase Tax, are causing diversion from British paper and print, loss of revenue to the Treasury, loss of postage revenue, inconvenience to the printing and allied trades, and added costs for printing and stationery Purchase Tax on export and associated printing and paper work; and whether he will take action to prevent this loss to the revenue and to encourage exports.

Mr. Barber

I am aware of the situation to which my hon. Friend refers but I cannot accept that the Purchase Tax alone has led to these developments. Nevertheless I will bear his representations in mind.