Purchase-tax Finality
Mr. Butler was fully entitled to point out in the debate on purchase-tax in the House of Commons on Monday that the Douglas scheme for a revised purchase-tax "came from the Opposition's own stable and from the committee which they had appointed." That does not necessarily make it a good scheme, but it does blunt the edge of the Opposition's criticisms. On the whole the Douglas scheme was sound and practical, and the Government was right to adopt it. No doubt the case for helping Lancashire by removing the purchase-ta altogether, or raising the level at which, under the Douglas scheme, the tax begins to operate, is superficially strong: but the case against singling out one industry for exemption from a general tax is still stronger. Some other way must be found of helping Lancashire; one way—the placing of the maximum of Government orders there immediately—has been found. As it is, Mr. Butler has found himself able to give some small measure of relief from purchase-tax on a fairly wide range of articles in general use, including footwear. In the case of an individual garment it amounts to little, but it will cost £17 million in a full year. Mr. Butler might perhaps have gone a little further than that, but he has not much margin to play with. At any rate it will be of some help to traders to have a definite and final decision. Buyers naturally held back while the prospect, and the extent, of reductions was left open. Now postponed purchases may to some extent materialise.
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