§ Mr. Ashleyasked the Chancellor of the Exchequer on what principles drugs and medicines are exempted from purchase tax; and what proportion of each is so exempted.
§ Mr. HigginsThey are considered on a recommendation by the Secretary of State for Social Services or the Minister of Agriculture. Fisheries and Food. No distinction is made between drugs and medicines in this context.
§ Mr. Norman Lamontasked the Chancellor of the Exchequer if he will publish in the OFFICIAL REPORT a list of the different types or classifications of goods on which purchase tax levied at its present level represents a greater addition to wholesale prices than a value added tax levied at the rate of 10 per cent., and in each case the rate at which purchase tax is levied.
§ Mr. HigginsA 10 per cent. rate of value added tax charged on the retail price of goods would be lower than the 18 per cent. and 25 per cent. rates of purchase tax currently charged on the wholesale price of a very wide range of goods particulars of which are given in Customs and Excise Notice No. 78, a copy of which is in the Library.