§ 61. Mr. Nabarroasked the Chancellor of the Exchequer if he will provide information as to the estimated yield during the last financial year from Purchase Tax in respect of articles chargeable at 5 per cent., 10 per cent., 15 per cent., 30 per cent., 50 per cent., 60 per cent., and 90 per cent., respectively; and what he estimates will be the yield from Purchase Tax during the current financial year on articles chargeable respectively at 60 per cent., 30 per cent., 15 per cent., and 5 per cent.
§ Mr. SimonThe figures are as follows:
ESTIMATED YIELDS FROM PURCHASE TAX IN 1957–58 AND 1958–59 Rate of tax per cent. Estimated yield 1957–58 1958–59 £ million 90 … … 29 — 60 … … 236 209 50 … … 3 — 30 … … 130 178 15 … … 40 45 10 … … 4 — 5 … … 52 58 Total … 494 490
§ 62. Mr. Nabarroasked the Chancellor of the Exchequer to what factors he attributes the fact that revenue from Purchase Tax will drop only from £494 million in 1957–58 to £490 million in 1958–59, notwithstanding the substantial Budget concessions in Purchase Tax, costing £41 million in a full year.
§ Mr. SimonAs my right hon. Friend the Chancellor of the Exchequer said in 81W his Budget statement, a moderate increase in consumer spending is to be expected this year. The consequent increase in the yield from the Purchase Tax will, it is estimated, nearly offset the cost of the concessions which is put at £30 million for this financial year.
§ 63. Mr. Nabarroasked the Chancellor of the Exchequer the gross receipts from Purchase Tax on commercial vehicle chassis for each of the last five years; and an estimate of the net benefit during this period to the Exchequer, after allowing for the countervailing charge to the Inland Revenue in respect of initial allowances and depreciation for that part of the cost of commercial vehicles which is attributable to Purchase Tax.
§ Mr. SimonThe following is the Answer:
Year Purchase Tax Received Shortfall of Inland Revenue Taxes Difference £ million £ million £ million 1953–54 … 9.1 — 9.1 1954–55 … 10.2 1.0 9.2 1955–56 … 12.7* 1.8 10.9 1956–57 … 13.1 2.7 10.4 1957–58 … 14.2 3.3 10.9 * The rate of tax was increased from 25 per cent. to 30 per cent. from 27th October, 1955. The first column shows the receipt of Purchase Tax on commercial vehicles in each of the five years. The second column shows the estimated amounts by which the receipts of direct taxes were less in each of those years on account of capital allowances attributable to the Purchase Tax paid in the period on commercial vehicles.