HC Deb 19 February 1959 vol 600 cc80-2W
Mr. Nabarro

62, asked the Chancellor of the Exchequer whether he will, at an early date, examine the anomalous situation that, whereas the supply of medicines to the public under the National Health Scheme is subsidised by the Government, medicine purchased outside the Scheme by the public is purchase-taxed at 30 per cent.; and whether, in view of the desirability of freeing from tax anything bought to relieve suffering, promote health, or reduce unnecessary expenditure under the National Health Scheme, he will now abolish or reduce the Purchase Tax on medicines and drugs.

Mr. Erroll

My hon. Friend will not expect me to anticipate my right hon. Friend's Budget statement.

63. Mr. Nabarro

asked the Chancellor of the Exchequer whether, in view of the fact that the British tourist industry is estimated to have earned £129 million from overseas tourists last year, he will now treat this industry, generally speaking, like other industries as regards Purchase Tax, and relieve it of the obligation to pay tax on essential items of hotel and restaurant equipment, such as carpets, furniture, and fittings.

Mr. Erroll

All industries pay the appropriate Purchase Tax on goods such as carpets, furniture and fittings for their own use. I have nothing to add to the answer to my hon. Friend's previous Question on this subject on 16th December.

64. Mr. Nabarro

asked the Chancellor of the Exchequer what percentage of the total revenue was produced by the Purchase Tax in 1950–51, and for each year since then up to 1957–58; and what is his estimate as to the percentage which it will produce during the current financial year.

Mr. Erroll

The following are the figures:

(a) Financial Year (b) Purchase Tax Yield (c) Total Ordinary Revenue (d) (b) as percentage of (c)
£m. £m.
1950–51 303 3,978 7.6
1951–52 338 4,440 7.6
1952–53 314 4,439 7.1
1953–54 299 4,368 6.8
1954–55 342 4,738 7.2
1955–56 419 4,893 8.6
1956–57 458 5,158 8.9
1957–58 494 5,343 9.2
1958–59 (Budget estimate) 490 5,439 9.0

66. Mr. E. Fletcher

asked the Chancellor of the Exchequer if he will reduce the Purchase Tax on gramophone records.

Mr. Erroll

I cannot anticipate my right hon. Friend's Budget decisions.