§ 56. Sir G. Nabarroasked the Chancellor of the Exchequer whether he is aware that babies' white carrying shawls not less than 48 inches square, knitted or made from woven cloth or such cloth with a mixture of rayon, silk or cotton, and blue or pink shawls, knitted, are free of purchase tax, but identical articles of a smaller than usual babies' size of 36 inches square are subject to Purchase Tax; why lemon, peach, maize, cream and pale green shawls are all subject to Purchase Tax, whereas white, blue and pink shawls 48 inches square and over, are exempt; why he is differentiating between colours of infants' shawls and against under-sized babies; and whether he will make a statement.
§ Mr. du CannA distinction has to be drawn between babies' carrying shawls, which are by Statute exempt from tax, and other shawls and squares which are taxable. I am satisfied that the existing distinction is a reasonable one.
§ 57. Sir G. Nabarroasked the Chancellor of the Exchequer whether he is aware that on an ignition-key fob with a commercial badge the fob is free of 197W Purchase Tax whereas the key-ring is taxed at 10 per cent.; that the same ignition-key fob with St. Christopher medallion is taxed at 25 per cent.; that on an ignition-key chain with set of spanners attached, the former carries Purchase Tax at 10 per cent., the latter no tax, and the protective case 25 per cent.; and that when a penknife is substituted for spanners the whole, less the protective case, is taxed at 10 per cent.; why motorists' spanners are fiscally preferred to penknives; why three different rates are applied to components of one article; and what action he will take to remedy this anomaly.
§ Mr. du CannA key-ring or chain and its appendages are taxed as separate articles if, as is usually the case, they can be readily separated. This avoids anomalies because it means that they bear the same tax whether they are put together before or after the point when tax becomes due. Penknives are taxed as personal articles of cutlery under Group 13 of the tax Schedule; spanners, like most industrial tools, are tax-free.
§ 58. Mr. Holtasked the Chancellor of the Exchequer if he will give consideration to the possibility of substituting an added value tax, as used in France, for the existing Purchase Tax.
§ Mr. du CannThis is a topical issue and my right hon. Friend is of course watching closely the way in which informed opinion for and against an added value tax is developing, but at this time of year I cannot comment on such matters.