Motor Car and Commercial Vehicle Chassis (Purchase Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 19th December 1957.

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Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Kidderminster 12:00 am, 19th December 1957

asked the Chancellor of the Exchequer what is the present approximate net yield, respectively, in respect of Purchase Tax on motor cars and commercial vehicle chassis.

Photo of Mr Enoch Powell Mr Enoch Powell , Wolverhampton South West

It is £94 million and £12½ million respectively for the twelve months to 30th September, 1957.

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Kidderminster

Is my hon. Friend aware that the commercial vehicles' chassis is the only case of the Purchase Tax being made applicable to industrial capital goods? Would it not be just about as sensible to impose the Purchase Tax on a railway locomotive or a railway wagon—or a freighter aircraft—as it is ridiculous to put it on the chassis of a goods vehicle on our roads?

May I have an answer?

Photo of Mr Fred Blackburn Mr Fred Blackburn , Stalybridge and Hyde

Could the Financial Secretary say how the figure of yield of Purchase Tax on motor cars compares with the loss to the Exchequer as a result of motor cars ranking as a business expenditure?

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Kidderminster

May I have an answer to my supplementary now, Mr. Speaker?

Photo of Mr William Morrison Mr William Morrison , Cirencester and Tewkesbury

I cannot make a Minister answer if he does not want to.

Photo of Sir Gerald Nabarro Sir Gerald Nabarro , Kidderminster

A jolly bad show, all the same.