§ Mr. Scott-Hopkinsasked the Chancellor of the Exchequer why retailers of soft furnishing are required to pay, after 27th May, 1969, 13½ per cent. purchase tax by the Customs and Excise on the cost they have incurred in making up soft furnishing materials for their customers, although the materials used have already borne the appropriate rate of purchase tax; and if he will make a statement.
§ Mr. Harold LeverAll manufacturers of taxable goods whose turnover exceeds 211W £500 per annum are required to apply for purchase tax registration. A retailer who makes up articles of soft furnishing from textile materials is a manufacturer for this purpose and, if registered, will have to pay 13¾ per cent. tax as from 27th May, 1969, on his made-up articles; but he may generally take credit for any tax paid on the materials used.