HC Deb 05 April 1950 vol 473 cc159-60W
Mr. Summers

asked the Chancellor of the Exchequer if he will provide a statement to show the incidence of indirect taxation in each of the items included in the make up of the cost-of-living index, showing Purchase Tax separately, estimating the figures where necessary.

Sir S. Cripps

The following items included in the retail price index are subject to specific Customs or Excise duties, and the approximate amounts of duty included in the retail prices are as follows:

Items Amount of duty
s. d.
Sugar 1 per lb.
Cocoa 1¼ per lb.
Beer of present average strength 8½ per pint
Whisky of usual strength 24 7 per bottle
Pipe tobacco—
Medium-priced brands 3 2 per ounce
Cigarettes—
Size sold at 3s. 6d. for 20 2 9½ for 20
Size sold at 2s. 7d. for 20 2 0½ for 20
Matches—safety …nearly 1¼ per box of 50
Cinema seat (price 1s 9d.)
Football admission—
(price 1s. 3d. or 1s. 6d.) 1
Petrol 9 per gallon

In addition, Purchase Tax is payable on the wholesale value of a number of articles which, however, carry very little weight in the index. A list of items affected is as follows:

Rate of Tax (Per cent. of wholesale value)
CLOTHING—
Cotton, woollen and rayon clothing materials (other than Utility goods and baby knitting wool) 66⅔
Articles of apparel for adults (other than Utility goods) 33⅓
Women's Utility fully-fashioned stockings 33⅓
Children's non-Utility gloves 33⅓
Adults' footwear (other than Utility goods) 33⅓
HOUSEHOLD GOODS AND TOILET ARTICLES:
Metal kitchen cabinets (non-Utility) 33⅓
Radio sets 33⅓
Pedal cycles 33⅓
Vacuum cleaners 33⅓
Domestic sewing machines 33⅓
Alarm clocks 33⅓
Table mangles 33⅓
Electric fires 100
Gas fires 66⅔
Linoleum, felt base, carpets and rugs 33⅓
Tea towels and glass cloths (other than Utility goods) 66⅔
Enamel wash-up bowls 33⅓
Electric lamp bulbs 33⅓
Tennis rackets 33⅓
Gramophone records 66⅔
Toilet soap, tooth paste, razor blades 33⅓
Cold cream 100
Proprietary medicines 33⅓
Writing paper 33⅓

Various items in the index may also be affected by other duties, such as those under the Import Duties Act, the Ottawa Agreement Act, the Key Industries duties, the duties on dried fruit, on silk, and on imported beef, and the motor vehicle licence duties; or by other duties chargeable on ingredients used in their manufacture. It is impracticable to give details of the incidence of these duties in respect of individual items.