§ 25. Mr. Parkerasked the Chancellor of the Exchequer whether he will now abolish Purchase Tax on car safety belts when sold as part of the fittings of a car.
§ Sir E. BoylePurchase tax would be charged only if the safety belts were fitted in the factory, before the point at which the legal liability to tax arises on the completed cars. British manufacturers are designing their cars so that safety belts can be properly fitted at a later stage, in order to accord with the customer's choice, and in these circumstances, no liability to tax on the safety belt arises.