§ 67. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that hospital stationery supplies may be purchased from registered suppliers free of Purchase Tax, but that registered suppliers often furnish large unregistered retailers with substantial stationery supplies and that hospital boards often deal with the latter, thus involving the boards in paying Purchase Tax on stationery; why Purchase Tax exemption is not applicable to all stationery purchased by hospital boards whether from registered or unregistered traders, as is possible for exports; and, in view of the undesirable discrimination involved between registered and unregistered traders in the matter of stationery supplies for hospitals, whether he will take early action to remedy the situation.
Mr. AmoryArrangements have been made which meet the difficulties of which the Stationers' Association has complained.
§ 68. Mr. Nabarroasked the Chancellor of the Exchequer why mouse traps of all kinds are still subjected to Purchase Tax whereas only the break-back and other 30W household types of rat traps are so taxed; what type of rat traps are now exempt from Purchase Tax; whether, in the interests of public health and avoidance of waste, he will arrange at the earliest possible date for all mouse traps, rat traps and fly swatters to be exempted from Purchase Tax; and what consultation there has been with other Departments which expend money in subsidising and encouraging the destruction of pests such as rats, mice, and flies.
Mr. AmoryThe tax applies to domestic articles only. I will bear in mind my hon. Friend's wish for equality between mice and rats so that, even in death, none shall be more equal than others.
§ 69. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that French, German and American toilet preparations are now dominating international sales whilst Great Britain occupies a minor rôle, and that a significant factor in this situation is the Purchase Tax charge on British toilet preparations sold on the home market at 60 per cent. including containers and packages; what steps he is taking to remove containers and packages from the incidence of Purchase Tax; and whether he will make a statement.
Mr. AmoryI can only remind my hon. Friend of the reply given to him by my hon. Friend the Economic Secretary on 5th February.
§ Mr. D. Priceasked the Chancellor of the Exchequer (1) what is his estimate of the revenue raised in a full year by Purchase Tax on those goods subjected at present to the top rate of 60 per cent.; and what would be the loss of revenue if all goods at present subjected to 60 per cent. were to be subjected only to 30 per cent.;
(2) what is his estimate of the amount of revenue raised in a full year by Purchase Tax on those goods subjected at present to the lowest rate of five per cent.;
(3) what is his estimate of the loss of revenue involved in abolishing the 5 per cent. rate of Purchase Tax, reducing the 15 per cent. rate to 10 per cent., reducing the 30 per cent. rate to 20 per cent., and reducing the 60 per cent. rate to 30 per cent.
31W
§ Mr. ErrollThe Budget estimate of £490 million in respect of Purchase Tax for the financial year 1958–59 was made up as follows:
Rate of tax per cent. Estimated yield £ million 60 … … … 209 30 … … … 178 15 … … … 45 5 … … … 58 490 It is not the practice to publish any revision of Budget estimates in the course of the financial year, and I am not now prepared to say what would have been the expected cost of the changes mentioned by my hon. Friend at the time the above estimates were made.