HC Deb 14 December 1944 vol 406 c1364W
Mr. W. J. Edwards

asked the Chancellor of the Exchequer if he is aware that children's toy cotton Union Jack flags on sticks, size not exceeding 12 inches by 6 inches, retailing for 6d. each are subject to a Purchase Tax of 100 per cent., whilst the same articles, size not exceeding 20 inches by 10 inches, retailing for 1s. each are only subject to 33⅓ per cent. Purchase Tax, but the same flags measuring 40 inches by 10 inches, retailing at 2s. each, are entirely free of tax; and will he explain the reason for this anomaly.

Sir J. Anderson

These apparently anomalous distinctions arise from the fact that a small "flag" may be either a "fancy article" or a "toy" within the meaning of the schedules to the Act relating to Purchase Tax. I will consider whether the classification so far adopted is satisfactory, and will communicate further with my hon. Friend.