§ 20. Mr. Kenneth Bakerasked the Chancellor of the Exchequer when the Government's examination into the value added tax will be completed; and whether a report will be published.
§ Mr. DiamondI do not think that it would be appropriate for me to comment 218 on this subject so soon in advance of the Budget.
§ Mr. BakerHas not the Chief Secretary recognised that one way out of our economic malaise would be for us to have substantial cuts in direct taxation—Income Tax and Surtax? Is he aware that if these cuts were achieved, we should need broadly based indirect taxes, probably of a value-added nature or a sales tax? What is Government policy on this matter?
§ Mr. DiamondI can guarantee to the hon. Gentleman that he will have Government policy one fortnight from today.
§ Mr. GardnerNone the less, will my right hon. Friend bear in mind in considering the prospects of value-added tax the disastrous effects it would have on consumer prices?
§ Mr. DiamondYes, of course. There are substantial arguments on both sides in regard to a value-added tax, and I note what my hon. Friend said.