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Purchase Tax

Volume 526: debated on Tuesday 6 April 1954

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73.

asked the Chancellor of the Exchequer why clip-on metal draining boards are subject to Purchase Tax while draining boards included in metal sink units are exempt.

I would refer the hon. Member to the reply given yesterday to my hon. Friend the Member for Cardiff, North (Mr. Llewellyn).

asked the Chancellor of the Exchequer if he is aware that certain Birmingham firms, after submitting prototypes of projected lines to the local Purchase Tax centre, and receiving written tax free rulings, have incurred large expenditures on tools and sales promotion, only to receive from the same Purchase Tax centre, many months later, rulings of 50 per cent. tax on the same articles; and if he will take steps to see that such rulings are not lightly and in-advisedly made so that firms can safe-guard themselves against losses which arise thereby.

I regret that in one case a wrong opinion was expressed on the liability of an ashtray. This has since been corrected. The hon. Member will no doubt be aware of the difficulty which arises in borderline cases, and it is a tribute to the skill and care with which these complicated matters are handled that trouble of this sort arises so rarely.