Semi-trailers Free from P.T.
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TosiMplify the application of the 33A per cent, purchase tax on goods vehicles, some remissions have been made by the Government, which were announced in the House of Commons last week by Mr. Douglas Jay, Financial Secretary to the Treasury, during the debate on the Finance Bill.
-1 he tax will apply to chassis but not to bodywork. (This alteration will be of especial benefit to the operators of tankers.) What precisely constitutes a chassis, as, for instance, whether a cab should be included, and questions relating to the liability of vehicles of chassislesS construction, are under consideration. It is likely that cabs will be tax-free.
Purchase tax does not now apply to semi trailers, pedestrian controlled vehicles. Land-Rovers (except passengercarriers), or the batteries of hatters'electric vehicles. These changes will mean that the Treasury will receive £3,000,000 less than was formerly budgeted for—a charge which will be debited against increased revenue as a result of fuel derationing.
The tax will be payable on chassis delivered from manufacturers after July I. Vehicles supplied since May 1 will be tax-free, any duty having already been paid on them being refundable.
One manufacturer has given figures to show how the new regulations will affect prices. A 10-cwt, van, formerly liable to £104 tax, will bear £72 duty; a 5-ton petrol lorry, £141 compared with £171; a 5-ton oiler, £242 compared with £270; a 5-ton petrol tipper, £135 and £192; and a 5-ton oil tipper, £231 and £288.
Commenting on the modifications, the Road Hatflage Association states: "The announcement by the Government of
an adjustment in the tax on commercial vehicles is merely an attempt at lacesaving in view of the widespread dissatisfaction caused by the first proposal, The effect of the concession is comparatively small. It would appear to reduce purchase tax on the average to about 27 per cent. as against the original 33/ per cent.; except for certain more expensive vehicles, such as those constructed in carry liquids in bulk where the tax may be reduced to about 15 per cent
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