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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 Geoffrey Hirst Mr Geoffrey Hirst , Shipley 12:00 am, 3rd July 1957

It is not a particular commodity, but I must follow your Ruling, Sir Gordon. It is a very wide range of materials.

The class of goods which I have illustrated carries a rate of Purchase Tax which is not applicable to any other class of goods in this category, and I think it can be argued that there should be some explanation given why, over the years, one section of the tax code, of Purchase Tax, has been different in relation to a commodity which is working freely in competition with other commodities taxed at a different rate.

In view of the very poor excuses and answers which we have had on this matter, and the fact that it represents a very small sum of money, I hope that at long last not only this Committee but the trade itself will be given an inspiration to guide it so that it can feel that this continuing injustice, which has never been satisfactorily explained, is to be removed. In the past, every time any excuse has been advanced, it has always been answered by the trade, and this has led to a shift of ground by the Administration to try to find a further justification for the discrimination.