§ 5. Mr. Cartwrightasked the Secretary of State for Prices and Consumer Protection if she will bring forward proposals requiring suppliers of goods and services to quote prices which include the relevant rate of value added tax.
§ Mr. MaclennanThis practice is being examined by the Director General of Fair Trading, who can put proposals for legislation to control it to my right hon. 11 Friend through the Consumer Protection Advisory Committee. I would like to have his recommendations and the Committee's report before considering whether any other action should be taken.
§ Mr. CartwrightI am grateful to my hon. Friend for that reply, but does he agree that it is difficult for the consumer to exercise an independent choice when some firms quote prices including VAT and others exclude that tax? Does he further agree that in some cases the practice of quoting VAT-exclusive prices is a deliberate attempt to deceive the consumer? Since we are lagging behind our EEC partners in allowing this practice, will the Minister cake the earliest opportunity to ban it?
§ Mr. MaclennanI very much agree that it is an undesirable practice and that there is an urgent need for a proposal to be put forward for thorough consideration. It is right that action contrary to good trade practice should be considered by the Office of Fair Trading. We shall seek to operate as speedily as we can the arrangements under Part II of the Act.
§ Mr. McCrindleDoes the Minister agree that equally confusing is the fact that in respect of service and maintenance agreements in central heating systems the rate of VAT is 8 per cent., whereas in the case of service and maintenance agreements in respect of washing machines it is 25 per cent.? Does he not agree that that anomaly is in need of rectification?
§ Mr. MaclennanThe hon. Gentleman refers to an issue of substance that would be more appropriately directed to my right hon. Friend the Chancellor of the Exchequer.