The tax on fireworks - a true story

60 years ago fireworks were added to the list of goods chargeable with Purchase Tax. Hansard records an odd debate that took place on 12 February 1962 concerning the extent of the charge. 

The new Purchase Tax order paper stated that the Tax (a precursor to VAT) was to be charged at 25% on fireworks of all kinds sold over the retail counter for 5th November celebrations and also those used in firework displays. Previously it was only charged on indoor fireworks which were considered to be "a variety of toy." The mind boggles!

As a result of a question raised in the House, the Government had to make it clear that the tax would not apply to those fireworks that were made for either military or marine purposes. 

Thus there was to be no purchase tax on signal rockets, on "Very lights", on bird scarers used by fruit farmers or on "other commercial articles of that kind".  Seems sensible of course. But tax is never simple. 

There then followed a discussion which included these questions: 

• "If a rocket is fired from a ship for the entertainment of the passengers would Purchase tax be payable or not?" 
• "Are the sparks or stars emitted by a firework, such as a rocket, exploded on Guy Fawkes night for pleasurable purposes different to the sparks and stars emitted from a firework exploded at sea?" 
• "Are 'crackers' fireworks or toys? I am referring to crackers in boxes, containing a mercurial strip pulled at children's parties—not to biscuits". 
• "What percentage Purchase Tax would go on a 'penny banger'?" 

Let's finish this ruby anniversary review with a quote from GR Mitchison (the member for Kettering) who said: 

"This is a silly Order, and a very cheerless one. I can only explain it on the ground that the Government have had so many rockets....that they feel that it is about time a tax was imposed on rockets. There is no other explanation for the Order".