§ 4. Mr. van Straubenzeeasked the Chancellor of the Exchequer whether he 1623 is satisfied that VAT repaid on appeal against assessment is returned to those who paid it.
§ The Financial Secretary to the Treasury (Mr. Robert Sheldon)VAT repaid after a successful appeal against an assessment is normally sent to the registered person.
§ Mr. van StraubenzeeDoes the Minister feel himself to have any responsibility for seeing that the registered person passes on the benefit? In that connection, will he, perhaps, examine the question of the VAT repaid to British Rail in respect of student travel cards to see whether the money has been repaid to the people who originally paid it?
§ Mr. SheldonThat is a matter for British Rail, which has the duty to pass on the VAT, which it did, and, of course, a refund became payable. I understand that British Rail is now prepared to refund the tax paid by individual students on production of a rail card on which the tax was paid.
§ Mr. WelshMuch difficulty and loss is being caused to small traders and businesses by the VAT regulations concerning bad debts. Will the Government end the situation whereby small traders are liable for sums of VAT which they will never be able to retrieve?
§ Mr. SheldonIf the hon. Gentleman is referring to VAT on bad debts, he will be aware, I am sure, that we are examining this matter, and in due course the Government's final conclusions will be put before the House.
§ 5. Mr. Liptonasked the Chancellor of the Exchequer why invalid electric chairs purchased for hospitals by charitable subscriptions are subject to 8 per cent. VAT while similar chairs provided by the National Health Service are zero rated.
§ Mr. Robert SheldonSupplies to patients made through the National Health Service are not made in the course of business. Therefore, no VAT is chargeable to the patient and the question of zero-rating does not arise.
§ Mr. LiptonIs my right hon. Friend aware that the patrons of the "Priory Arms" public house in my constituency managed over a period of many months to scrape together £500 to buy an electrically-propelled chair for the local 1624 hospital? On this they had to pay £46 VAT. Can they have that VAT money back?
§ Mr. SheldonThe example to which my hon. Friend refers deals with an item that is not as readily identifiable as some of those where we have been able to make concessions. The difficulty with VAT is that it was introduced as a broad-based tax. We have made some changes, and I am always prepared to look at the possibility of others, but there are certain difficulties of control which make further progress in this direction difficult.
§ Mr. Michael MarshallWill the Financial Secretary look at this issue in the wider context and make a thorough review of the VAT issue? Will he, for example, look again at the question of a single rate to cover a range of anomalies about which he knows, such as in the boat-building industry?
§ Mr. SheldonThe question of a single rate of VAT must wait for the Budget judgment in due course. As for a review of the working of the value added tax system itself, the hon. Gentleman will be aware that this is being examined by Customs and Excise. I hope that some of the comments that arise from that review will be made available during the Budget debates.
§ Mr. LiptonWill my constituent get the £46 VAT back? May I have a definite answer to that request?
§ Mr. SheldonWe all admire my hon. Friend's persistence. He will be aware that the present regulations preclude that payment from being made. As I said before, we have introduced changes in the system of VAT introduced by the Conservatives. I do not think that it lies in their mouths, having introduced this very rigid tax, now to ask for changes which its working makes difficult to achieve.
§ Mr. LiptonOn a point of order, Mr. Speaker. In view of the unsatisfactory nature of that reply, I shall seek to raise the matter on the Adjournment at the earliest opportunity.
§ The following Question stod upon the Order Paper:
§ 11. Mr. BrothertonTo ask the Chancellor of the Exchequer what is the rate of VAT on lawn mowers.
§ Mr. SpeakerMr. Michael Brotherton.
§ Sir S. McAddenOn a point of order, Mr. Speaker. May I ask your guidance as to how this Question managed to appear on the Order Paper? If my hon. Friend so desired, he could have walked into the Library and found out the information for himself.
§ Mr. SpeakerThat is very good advice, and I shall look into it. Mr. Michael Brotherton. He is not here anyway.