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Abolish Purchase Tax on Tyre-Repair Material

26th November 1943
Page 35
Page 35, 26th November 1943 — Abolish Purchase Tax on Tyre-Repair Material
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I WOULD like to draw your attention to the anomalous position regarding the 334 per cent. Purchase Tax recently introduced by H.M. Customs and Excise on repair cord fabrics, tension cord patches and ready-built

cross patches.. _ • In the firstplace, it will be remembered that the Purchase Tax introduced in or about October, 1940, was introduced only on car tyres at that date, because it was felt that these tyres came within the list of luxury goods then compiled by the Government.

We cannot remember that repair materials necessary for any other luxury commodity were taxed at this time., . .

Later, in the early part of 1942, the tax on car tyres was abolished for the obvious reason that, due to the alteration in the rubber position brought about by the war in the Far East, the tyre could no longer be regarded as a luxury, and became, in fact, an article "essential to the life of the community."

We now find that in July or August, 1943, roughly 17 months later, some bright individual got an idea that thb Government had beenmissing the opportunity of collecting some tax on certain fabric which is being marketed for the repair of this very essential commodity —the pneumatic tyre—and forthwith proceeded to stir all the necessary Government legislation in order to introduce a further burden and worry to an already overstrained industry.

We would point out that, contrary to the opinion expressed by some people, this Purchase Tax on repair cord fabric becomes a serious Matter when viewing the position of tyre repairing as a whole. If would appear, on the face of it, that the tyre repairer doing a really first-class job, using all new material throtighout, is being penalized, whilst the man using ordinary skived patches made from old carcasses "gets away with it," It must be admitted, however, that in these days of short supplies practically all tyre repairers are using both.

The matter becomes serious, however, when one takes into consideration the fact that there are very many fewer cars on the road to-day as against 1940, whereas, in all probability, commercial vehicles have increased. In any case, giant pneumatic tyres are much more important than car tyres, and if one has to build 12-, 14-, 16and sometimes 18-ply reinforcements into a tyre, the Purchase Tax on this reinforcement, if new material, be used, makes the price of the job quite prohibitive. It is felt that the Government's attitude in this matter does not take into consideration the fact that by imposing this tax it is encouraging the use of a cheaper type of reinforcement—in other words, the, skived cord patch, which is not advisable in the case of serious injuries.

There are _many technical reasons why the best type of tyre repair must be encouraged in the national interest, and why, therefore, the trade should not be burdened with a tax on material which is very necessary and, in fact, essential to achieve this better type of tyre repair.

It is felt that ive cannot miss the opportunity of point

frig out the invidious position in which the industry has been placed over this matter, wherein one finds a repaired article which is on the essential list and which is issued under only a -rationing scheme, devised by ministerial control, and yet which could be nine-tenths

free of tax, and the other one-tenth taxable. This Association feels that the nature of the trade is such that there should be no Purchase Tax on any repair material

whatsoever. R. G. KIRKPATRICK ,

National Secretary, for National Association of Tyre Specialists. Hadley Wood.


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