§ INTRODUCTION OF VALUE ADDED TAX TEMPORARY POWER TO CONTROL PRICES AND CHARGES
§ Lords Amendment: No. 3, in page 8, line 15, after "reflect" insert "—(a)",
§ The Chief Secretary to the Treasury (Mr. Patrick Jenkin)I beg to move, That this House doth agree with the Lords in the said amendment.
Mr. Deputy SpeakerI think that it will be convenient if with this we take Lords Amendment No. 4, in page 8, line 17, at end insert:
(b) alterations in the rates of customs ana excise duties payable in respect of spirits, beer, wine, British wine, tobacco, matches and mechanical lighters, being alterations first having statutory effects by virtue of Resolutions of the House of Commons made in March 1973 under the Provisional Collection of Taxes Act 1968".
§ Mr. JenkinThe House will remember that the clause provides for the control of the changeover from purchase tax and SET to VAT. The Bill was drafted and debated in the House before the Budget, at a time when decisions had not then been announced about the effect of VAT 597 on the excise duties on various products mentioned in the second of the two amendments.
The House knows that my right hon. Friend the Chancellor of the Exchequer announced reductions in the excise duties approximately of an amount to compensate for the fact that these products are to be charged with VAT, and it therefore becomes necessary that the Bill should contain provisions to ensure that this changeover should do no more than reflect the impact of the change in taxation.
The amendments were introduced in another place to achieve that object, and I commend them to the House.
§ Question put and agreed to.
§ Subsequent Lords amendment agreed to.