§ 11. Mr. Meadowcroftasked the Chancellor of the Exchequer if he will transfer the responsibility for value added tax from Her Majesty's Customs and Excise to the Inland Revenue.
§ Mr. MooreNo, Sir. When VAT was introduced in 1972 Customs and Excise was responsible for managing purchase tax, one of the taxes replaced by VAT, and the decision to introduce VAT in the United Kingdom on a transaction basis, rather than an accounts basis, was finally decisive in favour of laying the administration of VAT to Customs and Excise rather than to the Inland Revenue.
§ Mr. MeadowcroftWill the hon. Gentleman acknowledge that, in relation to tax, businesses have to concern themselves with two very different types of Government Department, and that Customs and Excise is acknowledged to have far less knowledge of the workings of business and to be far less flexible in dealing with the real problems currently faced by businesses?
§ Mr. MooreI do not accept the hon. Gentleman's reservations. The taxes are very different in kind. The needs are different and so are the methods of collection. I am confident that Customs and Excise exercises its authority in this matter in a proper way.
§ Mr. SternDoes my hon. Friend agree that the suggestion implicit in the question would be a retrograde step, if only because the record of Customs and Excise on making its rules and regulations available to the public has recently been rather better than that of the Inland Revenue?
§ Mr. MooreI do not accept my hon. Friend's latter point, but I agree that the suggestion would be a retrograde step for the taxpayer, the country and the administration of the Revenue and Customs and Excise.