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Purchase Tax

Volume 498: debated on Tuesday 8 April 1952

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asked the Chancellor of the Exchequer what rates of Purchase Tax are carried respectively by domestic electric, gas and solid-fuel space heating appliances and cookers; and what changes are contemplated consequent upon the D proposals.

Solid-fuel space heating appliances and all cookers are exempt from Purchase Tax. Domestic space heating appliances suitable for operation from electric mains are taxed at 100 per cent. and those suitable for operation from gas mains are taxed at 66⅔ per cent. There were no Utility schemes for these articles and they are not therefore covered by the new Purchase Tax arrangements provided for in the present Finance Bill.


asked the Chancellor of the Exchequer if, in view of widespread misunderstanding, he will make a statement on the application of uplift to goods attracting Purchase Tax; and whether he is satisfied with the working of the present arrangements.

Since the institution of Purchase Tax, the law has laid down a common basis of assessment for all goods, so as to avoid inequities between different classes of traders. This is the wholesale value, to which sub-wholesale prices must be levelled up, and retail prices levelled down, for assessing tax. I am not aware that there is widespread misunderstanding in this matter, but if my hon. Friend has the D scheme in mind the position is that the law and practice for determining wholesale value is not affected by its introduction. As to the second part of his Question, if he cares to particularise the ways in which he regards the present system of tax valuation as unsatisfactory, I will look into them.