§ 60. Sir W. Wakefieldasked the Chancellor of the Exchequer why Metatone has been exempted from Purchase Tax, when other medicinal tonic preparations of a similar nature remain subject to tax at the rate of 33⅘ per cent.
§ Mr. JayMetatone, in company with all other preparations which satisfy the same criterion, is exempt from Purchase Tax because its medicinally active ingredients are specified in Head III of the Schedule to the Purchase Tax (No. 5) Order, 1948.
§ 61. Sir W. Wakefieldasked the Chancellor of the Exchequer why mixtures of substances described in the official monographs named in Part II of the Eighth Schedule to the Finance Act, 1948, may be sold free of tax under a brand name for dispensing purposes, while compounds of such substances remain subject to tax; and if he will take steps to remove this anomaly at an early opportunity.
§ Mr. JayThe principle of the exemption is that the exempt substances must have the authority of one of the 127W official publications specified. In mixtures the substances retain their properties and authority. But compounds may be entirely different in character from the substances from which they are derived and are therefore exempt only if they are themselves specified in one of the official publications.
§ Mr. Sharpasked the Chancellor of the Exchequer if he will publish a table showing what increases have been made in the various Purchase Tax rates by the Finance Act, 1948, and subsequently by Treasury Order; and what is the estimated annual yield.
§ Mr. JayThe following table shows the principal increases. The estimated annual yield is about f15 million a year.
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Brief Description Rate at 1st April, 1948 Current Rate Per cent. Per cent. Group 1— Utility fully-fashioned stockings Exempt 33⅓ Group 4— Children's safety reins and safety harness Exempt 33⅓ Group5— Non-utility domestic textiles, except pillows, bolsters and certain mattresses 50 66⅔ Group 6— Non-utility tissues and fabrics except pile and woven-figured fabrics and certain other fabrics 50 66⅔ Group 7— Plastic sheeting 50 66⅔ Group 9— Rugs, not made of fur-skin, other than floor rugs 50 66⅔ Group 10⅓ Certain window display papers Exempt 33⅓ Serviettes, doyleys, table covers, etc., of paper 50 66⅔ Group 11— Certain articles, not being vessels, used for food and drink Exempt 33⅓ Domestic vermin traps Exempt 33⅓ Non-utility kitchen cup-boards and dressers Exempt 33⅓ Mirrors 75 100
Brief Description Rate at 1st April, 1948 Current Rate Per cent. Per cent. Group 12— Domestic refrigerators Exempt 33⅓ Electric space and water heating appliances 75 100 Group 13— Clasp knives and cutlery blanks Exempt 33⅓ Group 14— Fluorescent lighting tubes not exceeding 80 watts Exempt 33⅓ Group 19— Musical instruments except gramophones adapted for the blind and non-portable organs and parts 50 66⅔ Player piano records and gramophone records not adapted for the blind 50 66⅔ Group 20— Parts of toys, games and sports requisites Exempt 33⅓ Group 21— Umbrellas and sunshades 50 66⅔ Group 22— Smokers' requisites except matches and mechanical lighters 50 66⅔ Group 23— Trunks, bags and other receptacles not of leather, hide skin, cane or wicker 50 66⅔ Trade or professional receptacles of leather, hide or skin 50 66⅔ Group 24— Certain photographic equipment 50 66⅔ Group 25— Reproductions of pictures, engravings etc., executed more than 100 years ago 50 66⅔ Group 31— Toilet mirrors 75 100
§ Mr. Granvilleasked the Chancellor of the Exchequer if he will consider making a reduction in the Purchase Tax on the instruments of the Salvation Army band, and other religious organisations.
§ Mr. JayIt is unavoidable that liability for Purchase Tax should depend 129W on the character of the article, and I regret that it is impracticable to provide relief according to the uses to which articles of a chargeable kind are put.