HC Deb 28 March 1950 vol 473 cc22-3W
58. Mr. Storey

asked the Chancellor of the Exchequer if, in order to compensate traders for loss through Purchase Tax paid either on goods which become unsaleable or upon which Purchase Tax is removed or reduced, he will consider granting traders a discount of 10 per cent. when paying their Purchase Tax accounts.

Sir S. Cripps

No. I could not contemplate such a course.

Mr. Teeling

asked the Chancellor of the Exchequer whether his attention has been called to the fact that a man who wants his own upholstered suite of furniture re-covered, has to pay the Purchase Tax applicable to fabrics, which is 66 per cent., whereas if he purchases a new suite the Purchase Tax would only be one-third; and whether he will take this anomaly into consideration in his forthcoming Budget.

Sir S. Cripps

I am aware of the position, but I fear that I cannot anticipate my Budget statement. I would point out, however, that the tax at 33⅓ per cent. on a new suite is chargeable on the wholesale value of the complete suite whereas in the case of a re-upholstered suite the tax at the 66 ⅔ per cent. rate is payable only on the wholesale value of the cloth used.