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 Roy Jenkins Mr Roy Jenkins , Birmingham Stechford 12:00 am, 3rd July 1957

Why does it increase inflation more to reduce indirect taxation, like the Purchase Tax, which, although it might lead to a slight increase in inflationary pressure, also would have an effect on the price level, but does not apparently, in the view of the Government, increase inflation to reduce direct taxation, whether to the payers of Surtax or any other tax which has no compensating effect upon the price level?