§ 5. Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will make a statement on the Government's policy regarding a value-added tax; and when he will implement this policy.
§ 27. Mr. Sillarsasked the Chancellor of the Exchequer if he will make a statement on his policy regarding a value-added tax.
§ Mr. Iain MacleodNot now, Sir.
§ Mr. Arthur LewisIs the Chancellor aware that it has been reported in 470 reputable journals that if we go into the Common Market, whatever the terms, we shall have to have the value-added tax? As the leaders of both parties are committed to going into the Common Market, would it not appear that we shall have the value-added tax if we go in?
§ Mr. MacleodIt is certainly true that the value-added tax is part of the taxation arrangements of the Common Market, but in the study I have been giving to it I have looked at it irrespective of the question of the Common Market. After all, nine different countries have introduced it. It is a tax of some complexity but of very great attractions indeed.
§ Mr. SillarsIs the Chancellor aware that in the Conservative Party's manifesto it is said that the party will possibly replace purchase tax with a value-added tax? Will he now tell us whether he will or will not introduce a value-added tax within the next 12 months?
§ Mr. MacleodWe made that point entirely clear. Perhaps I could go over it for the hon. Member. The pledge to abolish S.E.T. is firm. We have said that we are also carrying out a review of taxation, and, although there are a number of possibilities, the one to which we have given most attention is the value-added tax. If we introduce a value-added tax, purchase tax will go, too.
§ 12. Mr. Milneasked the Chancellor of the Exchequer if he will make a statement on the proposals for a value-added tax in Great Britain arising from negotiations on entry into the European Economic Community.
§ Mr. Patrick JenkinNo, Sir.
§ Mr. MilneIs the hon. Gentleman aware that the secrecy about the value-added tax is bound to cause concern, not only in Britain but in Europe generally? It is time that the Government came clean on this matter. Or have they dismissed the idea of a value-added tax until they are coerced into it during the course of the negotiations on the Common Market?
§ Mr. JenkinAt the risk of boring the House again, I must impress upon hon. Members opposite that we do not intend to announce all our decisions within a 471 fortnight of the General Election. We have had too much instant government.
§ Mr. TaverneWill the hon. Gentleman convey his views on instant government to his right hon. Friend the Secretary of State for Education and Science?
§ Mr. MilneOn a point of order, Mr. Speaker. In view of the unsatisfactory nature of that reply, I give notice that I will raise the matter on the Adjournment at the earliest possible moment.
§ 35. Mr. Raphael Tuckasked the Chancellor of the Exchequer what estimate he has made of the number and cost of civil servants necessary to administer a value-added tax.
§ Mr. Patrick JenkinThis would depend entirely on the form and coverage of the tax.
§ Mr. TuckAs it is evident that a much larger number of civil servants would be required, and as the Conservative Party have always been caterwauling about reducing the number of civil servants, will the Chancellor look into this very carefully before considering a value-added tax?
§ Mr. JenkinIt is one of the factors to which we are giving the closest study.