§ LORD BESWICKMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they will give an undertaking that the value added tax will not be levied on those goods on which purchase tax has already been collected.]
§ THE MINISTER OF STATE, DEPARTMENT OF HEALTH AND SOCIAL SECURITY (LORD ABERDARE)My Lords, this question is still under consideration, but the Chancellor of the Exchequer will deal with it in his Budget statement next month.
§ LORD BESWICKMy Lords, the question may be under consideration, but is there not a principle here that ought to be decided now? Can it be justified in any circumstances to tax this category of goods twice over?
§ LORD ABERDAREMy Lords, I am afraid I cannot go any further before my right honourable friend makes his Budget Statement.
§ LORD JACQUESMy Lords, will the Government give special consideration to the possibility of an interval between the cessation of purchase tax and the commencement of V.A.T.? This would enable traders to get rid of the stock which has been subject to purchase tax and might also give a fillip to the economy.
§ LORD ABERDAREMy Lords, I am grateful to the noble Lord for that suggestion. All these matters are under the most careful consideration. We are fully aware of this problem.
§ LORD BESWICKMy Lords, while recognising that there is a real problem 1262 here, would the noble Lord at least agree that this has been brought about by the precipitate action of the Government in introducing V.A.T. for Common Market purposes?
§ LORD ABERDARENo, my Lords; I could not agree with that. The fact is that the V.A.T. proposals are being put forward at the next Budget in order to give plenty of time for them to be fully considered before they are introduced.
§ BARONESS SUMMERSKILLMy Lords, may I ask the noble Lord whether we can assume that V.A.T. will not be levied on any goods on which purchase tax has not been levied?
§ LORD ABERDAREMy Lords, I am afraid that that is a completely different question.
§ LORD BEAUMONT OF WHITLEYMy Lords, would the Minister agree that the difficulty in which he finds himself is the result of the idiotic custom of changing all the taxes at one secret given moment of the year, and not having a permanent commission on taxation?
§ LORD ABERDAREMy Lords, I am not prepared to accept that, but I know that there are those who feel that way.
§ LORD SHEPHERDMy Lords, I wonder whether the noble Lord could answer this particular question. Could he not agree that there is no administrative reason why V.A.T. should be levied on goods which have already paid purchase tax?
§ LORD ABERDAREMy Lords, I should imagine that that would be perfectly possible, yes; but I cannot anticipate what decision will be made by my right honourable friend when it comes to the Budget.