Chassis Purchase Tax May End Before Budget Day
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BY OUR POLITICAL CORRESPONDENT
pt EHIND-THE-SCENES efforts by Conservative backbenchers at Li Westminster to persuade the Government to abolish purchase tax on commercial-vehicle chassis may be crowned with success within the next few weeks. I understand that strong representations have been made about the difficulties which commercial-vehicle firms are meeting at present, and Ministers have been impressed with the seriousness of the position.
It is regarded as a certainty that this tax will go when the Chancellor presents his next Budget in April. But Conservative M.P.s, led by Mr. Roger Gresham Cooke (Twickenham), want the tax lifted long before then.
I understand that they are hopeful of success. Indeed, it is felt that it may be only a matter of weeks before the tax is lifted.
M.P.s point out that an order by the President of the Board of Trade can change or end purchase tax levels overnight. No legislative action by the House of Commons is needed, although purchase tax changes are usually announced by the Chancellor in the Budget speech.
Mr. Gerald Nabarro (Cons., Kidderminster), whose sustained campaign against purchase-tax anomalies achieved success in the last Budget, is going "all out" during the present session for further concessions, and he puts the commercialvehicle tax high on his list of priorities. Next Tuesday he will point out to the Chancellor in the House of Commons that the British share of the export trade in goods vehicles by the principal producing coun,tries has fallen from 45.4 per cent. in 1950 to 27.6 per cent. in 1957. He will contrast this position with that of Germany, where only a low turnover tax applies. The German share has risen from 4.5 per cent. to 18.7 per cent, over the corresponding period. He will demand that the purchase tax on commercial-vehicle chassis be removed forthwith. Mr. Nabarro will return to the attack on December 18, when he will point out that the present net yield to the Exchequer from purchase tax on commercial-vehicle chassis, after taking into account initial and depreciation allowances, is not in excess of £8m. per year.