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Purchase Tax (Medicines)

Volume 463: debated on Tuesday 29 March 1949

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asked the Chancellor of the Exchequer whether he is aware that substances listed under Head II of the Purchase Tax (No. 5) Order, 1948, can only be sold free of Purchase Tax if they are not mixed with any substance other than one which can be regarded as an excipient, a vehicle, a base or a preservative and that, in consequence, such substances become liable to Purchase Tax if compounded with other medicaments, even if the resultant article is medically desirable; and whether consideration can be given to the removal of this anomaly.

This condition is designed to limit the exemption to essential drugs. If my hon. Friend considers that it has the effect of excluding any essential medicine from exemption and will let me have particulars of the preparation, I will have it considered when the next Treasury order affecting medicines is being prepared.


asked the Chancellor of the Exchequer whether he is aware that, under the present Purchase Tax orders relating to Part II of the Eighth Schedule to the Finance Act, 1948, no medicines or drugs which are not the subject of monographs in the British Pharmacopoeia, the British Pharmaceutical Codex, or other publications mentioned in that schedule, can be sold free of Purchase Tax, and that, since these publications are only revised at very long intervals, this condition imposes an undesirable penalty on the introduction of new medicines and drugs for the benefit of the public; and whether he will take remedial action in the near future

Notifications acceptedClaims for Cost of Works payments from individual ownersClaims for Value Payments
PaidUnder examinationPaidAwaiting Appeal Proof of title, etc.
1. Cost of Works Payments
To Public Authorities:—
(a) for repair of houses287,281 287
(b) for other work (site clearance etc.)4,335,839
To Private Claimants:—
(a) for repair of houses195,302,815
(b) for other properties89,024,505
2. Value Payments (including interest)
(a) houses91,837,616
(b) other properties79,826,882
3. Special Payments
(a) Charitable properties (including churches)10,474,959
(b) Public Utilities9,952,753
(c) Highways1,812,823
(d) Section 18 payments (exceptional site value)10,503