§ Mr. Liddallasked the Chancellor of the Exchequer what steps he is taking to defend the taxpayer from the retroactive effect on war expenditure caused by the three-point increase in the cost-of-living index arising from the Purchase Tax, in view of the fact that increases of wages and bonus are based on the index; and whether he will exclude from wage and bonus calculations the inflationary effect of the Purchase Tax?
§ Sir K. WoodI do not propose to adopt my hon. Friend's suggestion. I would remind him that a very large sum is contributed by the Exchequer to curtail increases in the price of staple foods, and therefore in the cost-of-living index.
§ Mr. Parkerasked the Chancellor of the Exchequer whether he is aware that Purchase Tax is now being imposed on gas mask carriers; that this is discouraging the carrying of masks; and whether he can remit this imposition?
§ Sir K. WoodGas mask carriers fall within the scope of the tax. The bulk of such carriers were bought before the tax came into operation. I am not aware that the tax discourages the carrying of masks, and I do not think it is practicable to exempt them.