§ Sir I. Fraserasked the Chancellor of the Exchequer whether in view of the high price of Christmas cards and the disparity in the prices charged, he will; reduce the Purchase Tax on them, bearing in mind the burden the tax imposes upon old people who wish to keep contact with their friends.
§ Sir S. CrippsAt present three rates of Purchase Tax apply to Christmas cards. I propose to reduce this to two with effect from 2nd January. The plainest ones will qualify for the 33½ per cent. rate. For the more elaborate ones I consider that 100 per cent. is the appropriate charge.
§ Mr. Sharpasked the Economic Secretary to the Treasury why a 66⅔ per cent. Purchase Tax is imposed on machinery-cleaning cloths 143W and, in view of the need for reducing industrial costs, whether it can now be removed.
§ Mr. JayMachinery-cleaning cloths fall within the general description "tissues and fabrics" and are taxable under that heading. There are exemptions for utility cloths and for rags and many kinds of cloth suitable for machinery-cleaning fall within their scope and are accordingly free of tax. As regards other cleaning cloths such as dish cloths I would refer my hon. and gallant Friend to the reply which my right hon. Friend the Chancellor of the Exchequer gave to the hon. and gallant Member for Totnes (Brigadier Rayner) on 22nd November.