HC Deb 30 January 1958 vol 581 cc105-6W
95. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that, at the present time, whereas a lady's shopping bag is free of Purchase Tax, it becomes liable to 60 per cent. duty if a zip fastener is fitted at the top to safe guard the contents; what steps are taken by his Department to ensure that shop ping bags sold without zip fasteners are not so fitted by the purchaser at a later date; and in how many cases preventive action has been taken in this connection during the past three years.

Mr. Simon

Shopping bags are free of Purchase Tax only when they are not fitted with a means of closing. It would not be in the public interest to disclose the methods of combating tax evasion; but I have no evidence of it in this connection.

96. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that many manufacturers, particularly in the business of making leather and travel goods, are discouraged from bringing out new merchandise for the export trade be cause of the complications of Purchase Tax and the fact that they cannot produce such goods for export unless there is an adequate home market; and whether he will cause an investigation to be made into this matter at any early date, with a view to ensuring that the leather goods industry will be given a better opportunity to develop their important potential export trade.

Mr. Simon

The interest of the export trade is one of the factors which, as my predecessor explained to my hon. Friend on 10th December, is always taken into account in decisions on the rates and incidence of Purchase Tax.

97. Mr. Nabarro

asked the Chancellor of the Exchequer for what reason a child's music case is subjected to Purchase Tax at 60 per cent. whereas a child's school bag is tax-free; when this matter was last given consideration by the Customs and Excise authorities; what is the present approximate annual revenue from children's music cases, and whether, under his regulations, this particular anomaly can be disposed of without a new regulation.

Mr. Simon

Because school satchels, which are distinctive articles, were statutorily exempted in 1951. My information is that there is no separate category of music cases specifically for children. Legislative authority would be required for any change in the position. As to revenue yield, I would refer my hon. Friend to my predecessor's reply to him on 17th December.