§ 51. Mr. Nabarroasked the Chancellor of the Exchequer whether he will now extend to all baby toilet preparations exemption from Purchase Tax in the same way as applies to baby dusting powders.
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Mr. AmoryMy hon. Friend has misread Notice No. 78; if he will look again at page 77, he will see that baby dusting powders for toilet use are not exempt.
§ Mr. Nabarroasked the Chancellor of the Exchequer whether he will, at an early date, reconsider the present anomalous position under which a wide range of essential toilet preparations in use by all classes of the community is charged to Purchase Tax at the top rate of 50 per cent., whereas many luxury items such as furs, jewellery, cinecameras and luxury clothing, are charged at one-half, one-quarter or one-tenth such rate.; and what would be the effect on the revenue of reducing the Purchase Tax on toilet preparations to the 12½ per cent. rate.
Mr. AmoryI dealt with the reasons underlying the system of Purchase Tax rates, and the considerations concerning luxuries and non-luxuries during the passage of the Finance Bills of 1958 and last year, and there is nothing I can usefully add. I regret that separate revenue figures for toilet preparations as such are not available.
§ Mr. Nabarroasked the Chancellor of the Exchequer how the Customs and Excise Department distinguish between a garden umbrella which is liable to Purchase Tax at 12½ per cent. and a bookmaker's umbrella which is liable to Purchase Tax at 25 per cent.