§ Mr. W. J. Edwardsasked 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. AndersonThese 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.