§ 99. Mr. Nabarroasked the Chancellor of the Exchequer what Purchase Tax rules he is applying where a wholesaler 43W grants a cash or trade discount to a retailer or consumer in the instance of goads bought which are subject to Purchase Tax; and whether the cash or trade discount is correctly applicable under his rules to the nominal amount of the Purchase Tax payable.
§ Mr. ErrollPurchase Tax is legally chargeable on the wholesale value of the goods. Where a price on which the wholesale value is based is subject to a discount available to all retail traders, the net price is used in valuation.
§ 100. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that organisations producing stationery for their own use can within limits please themselves whether they register or not, and thus pay less tax than firms purchasing their stationery through trade channels; and what steps he proposes to take to remedy this.
§ Mr. ErrollMy hon. Friend's Question does not represent the position accurately. I have no evidence that organisations producing stationery for their own use pay less tax on balance than firms which purchase stationery through trade channels.
§ 101. Mr. Nabarroasked the Chancellor of the Exchequer whether, before introducing his Budget, he will obtain and circulate an estimate of the cost of abolishing Purchase Tax on replacement cathode ray tubes.
§ Mr. ErrollThe estimated revenue from the Purchase Tax on all cathode ray tubes taxed as such is £1½ million. It is probable that most of this is in respect of replacement tubes.