HC Deb 27 March 1961 vol 637 cc100-1W
66. Mr. Nabarro

asked the Chancellor of the Exchequer whether he has now given consideration to the desirability of freeing from Purchase Tax all articles which can fairly be regarded as part of the tools of trade of the hotel industry; and whether he will give reasons for not freeing such articles from tax.

Mr. Barber

Liability of goods to Purchase Tax must depend not on the identity of the user but on the character of the goods. Most of the articles used in the hotel industry are of an ordinary domestic character.

67. Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware of the handicap imposed on the export trade in British toilet preparations as a result of 50 per cent. Purchase Tax on a large range of such preparations which are slightly perfumed in order to make them acceptable to the customer; and what steps he has taken to ascertain the extent to which Great Britain's principal competitors in the export market for toilet preparations, that is to say, the United States of America, France, and Western Germany, are equally handicapped, or otherwise, by such tax discrimination in their sales arrangements.

Mr. Barber

Exports of toilet preparations from this country and from the other countries mentioned by my hon. Friend are treated alike in that they are freed from Purchase Tax and from sales taxes. I do not believe that they are handicapped by such differences in internal taxation.

Mr. Nabarro

asked the Chancellor of the Exchequer whether he is aware that many necessities are still subject to Purchase Tax at 50 per cent. and 25 per cent., whereas other goods frequently described as luxuries are chargeable to Purchase Tax only at 12½ per cent. or 5 per cent., respectively; and whether he will undertake to rectify this situation by giving priority to Purchase Tax consolidation and further reduction.

Mr. Barber

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

Mr. Nabarro

asked the Chancellor of the Exchequer if he will state what approximate rate of tax would be necessary if a uniform rate of Purchase Tax were to be substituted for the present variable rates and still bring in the same amount of revenue from the goods at present chargeable with Purchase Tax.

Mr. Barber

About 19 per cent.