HC Deb 21 August 1940 vol 364 cc1324-5W
Sir P. Hannon

asked the President of the Board of Trade whether he will make a statement on the effect of the Purchase Tax upon the dutiable value of exports to the Dominions and to the United States of America?

Sir A. Duncan

I understand that in Australia sales taxes payable on goods sold in the exporting country for domestic consumption are not in any case included in the dutiable value of imports. In the other Dominions the authorities concerned have, at the request of His Majesty's Government in the United Kingdom, considered the matter and have either given an assurance that the Purchase Tax would not be regarded as part of the dutiable value under existing law or have agreed to take steps to ensure that it shall be excluded. I am glad to take this opportunity of acknowledging gratefully the helpfulness which they have shown in this matter. The effect of the Purchase Tax on the dutiable value of imports into the U.S.A. has also been the subject of friendly discussion with the United States authorities, but it has unfortunately proved impossible to meet the difficulties created by their existing law without altering the structure of the tax to such an extent as would, in the opinion of my right hon. Friend the Chancellor of the Exchequer, raise grave administrative difficulties and endanger the revenue.