§ 22. Sir David Rentonasked the chancellor of the Exchequer, in view of the fact that certain people, especially those who live in rural areas, have to travel to and from work by means of their own motor vehicles, if he will propose the exemption from VAT on motor fuel in such cases.
§ Mr. Joel BarnettNo, Sir.
§ Sir D. RentonIs the hon. Gentleman aware that people who have a turnover of £5,000 a year can register for VAT—in fact, have to do so—and can reclaim the VAT which they spend on petrol, whereas people who are less prosperous but have to use their cars to go to work are not in that fortunate position? Does the hon. Gentleman think that is fair? What will he do about it?
§ Mr. BarnettNot many employees are able to register for VAT. If the right hon. and learned Gentleman is talking about giving relief for this kind of tax, I cannot agree with him that it should be done in that way for one group of workers.