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 said no such thing. In fact, in this Budget, both direct and indirect taxation have been reduced, and to the extent that the Chancellor thought was reasonable and possible. The Clauses ask us to go further and would more than double the amount which my right hon. Friend the Chancellor thought it possible to remit.

The hon. Member for Shoreditch and Finsbury (Mr. Collins) raised two points. First, he asked how much of the 1s. in the £ is really passed on to the housewife, and suggested that it might be as much as 2s. and 3s. in the £. I am advised that the average is much more like 8d. in the £. Of course, there may be cases of people who do stick it on, but that is the advice I get from the Customs and Excise.