HC Deb 06 March 1973 vol 852 c270

Last November I announced proposals for avoiding double taxation on goods which have been acquired before VAT comes into force on 1st April, but which are sold by a registered VAT trader after that date and so attract VAT. The transitional problem arises when such goods have borne either purchase tax, or one of the revenue duties which will be abated to take account of the introduction of VAT.

The rebate scheme has been widely welcomed by the trade interests concerned, and as a result of the scheme there will be no excuse for increasing retail prices on the argument that traders need to recover purchase tax or revenue duty as well as VAT on goods in stock on 31st March.