§ 91. Mr. Nabarroasked the Chancellor of the Exchequer whether, in his programme designed to simplify and reduce Purchase Tax, he will give priority to the complete elimination of the 60 per cent. rate which imposes special and unjustifiable handicaps on the three industries mainly affected, notably in promotion of expansion of export trade.
§ Mr. ErrollI would again refer my hon. Friend to the reply given to the hon. Member for Barnsley (Mr. Mason) on 18th November.
§ 92. Mr. Nabarroasked the Chancellor of the Exchequer on what grounds rags are free of Purchase Tax whereas, broadly, all other tissues and fabrics are subject to such tax; and what machinery exists by which the customs and excise authorities are able to distinguish rags from other textile materials.
§ Mr. ErrollBroadly, tissues and fabrics are not subject to tax. Only narrow ones, namely those not exceeding 12 inches in width are chargeable. Rags are waste or damaged materials and old, worn or used materials not generally suitable for sale as goods of a taxable class.
§ 93. Mr. Nabarroasked the Chancellor of the Exchequer the total revenue from Purchase Tax for the first six months of the current year; and how this compares with the revenue received from such tax for the first six months of the previous financial year.
§ Mr. ErrollApproximately £240 million. This figure, which includes one quarter's receipts at pre-Budget rates of tax, is about £12½ million above the corresponding figure for last year.
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§ 94. Mr. Blenkinsopasked the Chancellor of the Exchequer whether he will take an early opportunity of abolishing Purchase Tax charged on printed stationery used by local health authorities when similar printed stationery used by other bodies within the National Health Service is now freed from tax.
§ Mr. ErrollNo. In the field of indirect taxation local authorities have always been treated like any other taxpayer or body of taxpayers.