§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether the Government, in ascertaining the effects of the introduction of value-added tax, will investigate what happened in Belgium when this tax was recently introduced; and to what extent it affected the rise in the cost of living in each of the countries of the Six.
§ Mr. HigginsI am watching with interest the experiences of Belgium and other countries with a value-added tax.
Mr. Arthur Lewis ask the Chancellor of the Exchequer (1) whether he is aware that on 1st January Luxembourg increased its 4 per cent. to 8 per cent. value-added tax rates to 5 per cent. and 10 per cent. on all items other than food; and to what extent such an application of a value-added tax in Great Britain will increase the cost of living;
(2) whether he is aware that in January Belgium introduced the value-added tax at rates of 6 per cent. on essential consumer goods and services such as food, tobacco and newspapers, 14 per cent. on clothes, leather goods and electricity, 18 per cent. on household appliances, and 25 per cent. on luxury goods such as television sets and record players; and, on the latest convenient date, what will be the increase in the cost of living on the basis that these rates are applied similarly in Great Britain.
§ Mr. HigginsNo estimates have been made of the hypothetical effects of introducing in the United Kingdom a value-added tax with the coverage and rates of the Luxembourg or Belgian taxes.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in HANSARD a detailed statement giving the amount of value-added tax at current rates, and the items of food upon which such a tax is imposed in each of the countries of the Six.
§ Mr. HigginsAll food is taxed in each of those Member States of the European Economic Community which have a 93W value-added tax, in most cases at a reduced rate; but detailed information about the amount of tax collected on food is not available.