§ 59. Mr. David Jones
asked the Chancellor of the Exchequer whether, to remove doubts as to the charging of additional Purchase Tax on suits ordered 1793 before 12th November, but not delivered until after that date, he will state the position of suits made from cloth in hand before 12th November, but delivered after that date.
§ Sir S. Cripps
Registered tailors, like other traders registered for Purchase Tax purposes, buy their materials tax free, but are liable to pay tax on the goods they make at the rate in force on the date of the delivery of the goods to the customer, no matter when they acquired their materials. Unregistered tailors (e. g., those with a yearly turnover under £500) buy their materials tax paid, but naturally pay no further tax on the goods they make from them, and would have no excuse for putting up their price in respect of clothes made from materials already in stock at the date of any increase in tax.
§ Sir W. Smithers
Is the right hon. and learned Gentleman aware that I have had many complaints on this score? Is he aware that it is most unfair, especially in one case of a gallant Merchant Navy officer who ordered his clothes, put the money by to pay for them, and now cannot afford the extra amount, because, after he tried them on, the tax has gone on?