HC Deb 26 May 1971 vol 818 cc167-8W
Mr. Bishop

asked the Chancellor of the Exchequer what is the rate of tariff on imported cars and vehicles; the percentage of purchase tax levied on cars and vehicles sold on the home market; and if, in the event of tariff reductions on imported vehicles, he will reduce by the same amount the purchase tax levied on the sale of United Kingdom produced vehicles.

Mr. Higgins

The full rates of import duty on motor vehicles range from 9 per cent. to 22 per cent. of their value. Full details are published in chapter 87 of H.M. Customs and Excise Tariff, a copy of which is available in the Library.

The rate of purchase tax levied on those passenger vehicles which are chargeable is 36⅔ per cent. of their wholesale value: this applies to passenger vehicles produced in the United Kingdom and imported passenger vehicles alike. As to the last part of the Question, such a discriminatory reduction would involve a breach of our international treaty obligations.