New Clause.; — (Reduction of Purchase Tax from Five or Ten per Cent. to One per Cent.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 3rd July 1957.

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Photo of Mr Nigel Birch Mr Nigel Birch , Flintshire West 12:00 am, 3rd July 1957

I would point out to the right hon. Gentleman that Purchase Tax was kept on by his Government for the very same reason that it is kept on by ours. We believe that it is one of the measures that we can take against inflation.

When introducing his Budget, my right hon. Friend calculated that on fairly austere principles he could perhaps remit £100 million of taxation, and part of that sum he put to remitting Purchase Tax upon household goods. But he went as far as he thought he could go. We believe that there can be no question of going further, to the tune of £157 million.