Purchase Tax

HC Deb 23 January 1951 vol 483 cc2-4W

58. Colonel Crosthwaite-Eyre

asked the Chancellor of the Exchequer the estimated increase in receipts from Purchase Tax for the financial year 1950–51, in view of the rise of prices that has taken place since the introduction of the Budget.

Mr. Gaitskell

I would refer the hon. and gallant Member to the reply given to the hon. Member for Stafford and Stone (Mr. H. Fraser) on 28th November last.

60 and 61. Mr. Redmayne

asked the Chancellor of the Exchequer (1) the amounts collected in Purchase Tax by each of the first, second and third rates during the first half of this fiscal year; and the amounts for the corresponding period of the previous year;

(2) the amounts collected in Purchase Tax by each of the first, second and third rates in the fiscal years 1945–46, 1946–47, 1947–48, 1948–49 and 1949–50.

Mr. Gaitskell

Since traders are not required to furnish separate particulars of Purchase Tax collected at the various rates, the exact amounts attributable to each rate are not known, but the estimated amounts are shown in the table below. It should be borne in mind that comparison of amounts of tax received at the various rates in different periods is vitiated by changes which have been made from time

Financial Year	Rates of Purchase Tax Tax	Estimated yield at each rate	Remarks
	Per cent.	£m.
1945–46	16⅔	28	The Finance (No. 2) Act, 1945, made certain changes in the Schedules of taxable goods.
	33⅓	62
	100	28
1946–47	16⅔	34	The Finance Act, 1946, made certain changes in the Schedules of taxable goods.
	33⅓	108
	100	39
1947–48	16⅔	35	The Finance Acts of 1947 introduced new rates of Purchase Tax and also made certain changes in the Schedules of taxable goods.
	33⅓	130
	50	27
	66⅔ and 75	5
	100	39
	125	10
1948–49	33⅓	164	The Finance Act of 1948 revised the Schedules of taxable goods and reduced the number of rates of tax to three. Receipts in the first quarter of the financial year were still accruing at the rates in force in the previous financial year.
	50	41
	66⅔ and 75	43
	100	31
	125	12
1949–50	33⅓	204	The Finance Act, 1949, made no changes in Purchase Tax.
	66⅔	46
	100	42
which includes for the first six months:	33⅓	93
	66⅔	21
	100	17
1950–51 (first six months)	33⅓	98	The Finance Act, 1950, reduced from 66⅔ per cent. to 33⅓ per cent. the rate of tax on motor cars with a retail value exceeding £1,280.
	66⅔	21
	100	18

64. Mr. De la Bère

asked the Chancellor of the Exchequer whether he will now consider remitting the Purchase Tax on radio batteries for old age pensioners over 70 years of age.

Mr. Gaitskell

I have considered this proposal with sympathy, but regret that I cannot adopt it.

Sir I. Fraser

asked the Chancellor of the Exchequer what Purchase Tax is payable on the material for the repair of lifebuoys.

Mr. Gaitskell

Cloth used for repairing lifebuoys is generally liable, in common with other tissues and fabrics, to Purchase Tax at the rate of 66⅔ per cent. of its wholesale value. I understand that about one yard is used to cover each buoy, and the tax would amount to a few shillings.

to time, both in the rates of tax and in the schedules of chargeable goods.