asked the Chancellor of the Exchequer whether in view of the fact that imported rabbit skins for the making of utility furs are not liable to purchase tax, he will give the same exemption to British rabbit skins so that a greatly extended home and export in dustry can be stimulated.
There is no distinction for Purchase Tax purposes between imported and British rabbit skins. If made up into utility fur garments, both pay only 16⅔ percent. If exported, both are exempt from Purchase Tax.
Is my right hon. Friend aware that the British rabbit skins known as "Rex" fur arc of a much better grade than the ordinary skins and therefore more expensive, are not used in utility furs, and are subject to 100 per cent. Purchase Tax, and that this is discouraging production of the furs and is discouraging ex-Servicemen from taking up this kind of enterprise? Will he go into the possibilities of this trade?
With great pleasure, but having regard to the over-all shortage of clothing, I do not believe that there will be much difficulty in disposing of these very valuable fur garments.
asked the Chancellor of the Exchequer whether he is aware that fur fabrics and Jacquard materials, bought by the yard, carry 100 per cent. Purchase Tax, whereas garments made of these materials carry only 16⅔ percent. Purchase Tax; and what steps he proposes to take to end this discrimination.
I will bear this in mind when considering the possibility of further Purchase Tax reductions next year.