HC Deb 31 May 1949 vol 465 cc137-8W
56 and 57. Mr. Erroll

asked the Chancellor of the Exchequer (1) on what classes of goods Government Departments pay Customs or Excise duties or Purchase Tax when making purchases for Departmental use; and on what classes of goods exemption is conferred;

(2) what regulations govern the waiver of Purchase Tax on goods purchased by Government Departments.

Sir S. Cripps

There are no special exemptions from Customs or Excise duties in favour of Government Departments. But, since the inception of Purchase Tax, goods bought for official use by certain Government Departments have not been charged with Purchase Tax, so as to avoid artificially swelling the yield of the tax beyond its true net value to the Exchequer.

59. Mr. Janner

asked the Chancellor of the Exchequer whether he is aware that owing to the high Purchase Tax, manufacturers are not making pie funnels and similar kitchen utensils which are essential to the housewife; and what steps he proposes to take in the matter.

Sir S. Cripps

I understand that one or two makers of ovenware have ceased to manufacture pie funnels because none of their other products were chargeable with Purchase Tax and they did not think it worth while to keep tax accounts for one line. As my hon. Friend the Secretary for Overseas Trade explained in reply to my hon. Friend's Question on 24th May, pie funnels are not regarded as essential articles. They are taxed at the lowest rate and I propose to take no action in the matter. I do not know what other utensils my hon. Friend has in mind.

63. Mr. E. P. Smith

asked the Chancellor of the Exchequer why it was decided on 24th May to extend Purchase Tax immediately to certain backed or coated felt fabrics which had been exempted from such tax in June, 1948; why prior notice was not given to enable manufacturers to adjust their output and stock positions; and if he will consider giving some redress in the matter.

Sir S. Cripps

The decision referred to relates to decorative furnishing and floor-covering felts which are statutorily excluded from the exemption for felt fabrics. A Press notice was issued after consultation with the trade associations concerned to ensure that practice conformed with the law. I do not see how any legitimate interest can have been damaged.