PURCHASE TAX ON RECORDS SIR,—It is indubitable that the cost
of gramophone records in the United Kingdom is ridiculously high. One would be prepared to have more sympathy with the record companies, however, if it were not for the fact that the sum upon which the Chancellor's 60 per cent. "tax is based is already grossly inflated by the abnormal profits made by the companies concerned.
I, too, have read the glossy booklet put out by the British Phonograph Committee, and I was impressed with the advances made by the recording industry since 1898. I was not impressed, however, by their deliberate omission of the cost to them of making a record. This, on fairly reliable information that I have, is approximately Is. 8d. for a 'pop' twelve-inch long-playing record and possibly 3s. for a classical twelve-inch long playing record. Even allowing 100 per cent. as a normal margin of profit, it will be seen that the price charged by the member industries of the British Phonograph Committee stands in no relation to the cost of the article sold.
I am glad to see that it has been suggested that the Monopolies Commission should inquire into the state of the industry, and I feel that the fact that they are expected to do so shows the true state of affairs obtaining in the industry.—Yours faithfully, 29 St. James's Street, SW1 JOHN BASSETT
Previous page
