HC Deb 07 July 1964 vol 698 cc79-80W
79. Sir G. Nabarro

asked the Chancellor of the Exchequer whether he is aware that whereas both motor-cars and smoking pipes are subject to Purchase Tax at 25 per cent. cleaning polish for motor-cars and all domestic polishes are untaxed, but cleaning polish for smoking pipes is taxed at 25 per cent.; why this discrimination in favour of non-pipe-smoker motorists exists; why car polish is preferred fiscally to pipe polish, both being polishes; and whether he will abolish Purchase Tax on pipe polish promptly.

Mr. Maurice Macmillan

Purchase tax is charged on goods according to the category into which they are grouped in the Purchase Tax Schedule. Polish as such is not in any taxable category. Certain kinds, however, are taxed because, being made for a special purpose, they do come within an appropriate Group of the Purchase Tax Schedule. For example, nail polish is taxed as a "toilet requisite" under Group 31, and pipe polish as "smokers' requisites" under Group 22. Car polish is not taxed because Group 27, covering road vehicles, does not include any accessories or "requisites".