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Hotels (Non-Utility Equipment)

Volume 476: debated on Tuesday 20 June 1950

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77.

asked the President of the Board of Trade whether he is aware that many hotels in this country catering for dollar paying visitors cannot afford to buy non-utility equipment in view of the fact that it is subject to Purchase Tax; and whether, since it is damaging to our export trade that utility goods should be used in hotels occupied by important buyers from the United States of America and other countries, he will investigate the matter with a view to remedial action in the near future.

We have received representations from the British Travel and Holidays Association about the difficulties experienced by hotels in this matter, and these are under consideration. While utility goods are primarily intended for general domestic use, we cannot accept the implication that their use by hotels damages our export trade.