§ 45. Sir M. Lindsayasked the Chancellor of the Exchequer whether he is aware that the Purchase Tax equivalent on motor cars in France, West Germany and Italy is 24 per cent., 13 per cent. and 10 per cent., respectively, of the retail price compared with 38 per cent. in Great Britain, the equivalent of 45 per cent. on the wholesale value; and what action he will take to give the British motor industry a fair chance to compete on equal terms.
§ Mr. MaudlingThe Purchase Tax on motor cars at 25 per cent. of the wholesale value is now equivalent to 21 per cent. of the tax-exclusive retail selling 25W price. As I said in my speech on 5th November, this rate of tax seems reasonable treatment for motor cars in the long term, and I have every confidence that the industry will be fully competitive with Continental manufacturers.