§ 41. Mr. Pavittasked the Chancellor of the Exchequer if he will take steps to exempt the servicing, rehabilitation courses, dispensing and purchase of hearing aids from value-added tax.
§ Mr. Patrick JenkinMy right hon. Friend is not yet ready to announce details of the coverage of value-added tax.
§ 44. Mr. McBrideasked the Chancellor of the Exchequer if he will undertake to keep free from the imposition of value-added tax all moneys charged for admission to sporting events.
§ Mr. Maurice MacmillanI will take note of the hon. Member's views.
§ 46. Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he has received the communication from the hon. Member for West Ham, North together with information on the effects of the imposition of a value-added tax; and whether, in view of this information, he will now drop his proposals to introduce this type of tax.
§ Mr. Maurice MacmillanI am anxious to help the hon. Member and if he will supply more details of the communication in question I will write to him.
§ Mrs. Lena Jegerasked the Chancellor of the Exchequer whether, in connection with his consideration of value-added tax, he will consider excluding from the tax payments for rent, rates, house purchase and mortgage repayments.
§ Mr. HigginsMy right hon. Friend is considering all aspects of the coverage of value-added tax.
§ Mr. Trewasked the Chancellor of the Exchequer what representations he has received about the payment of value-added tax on subscriptions to employers associations and trade unions; and what reply he has sent.
§ Mr. HigginsMy right hon. Friend has received a number of representations on this subject. In reply he has made it clear that the points made will be taken into account when the time comes to decide this question.
§ Mr. Deakinsasked the Chancellor of the Exchequer when he intends to pub- 304W lish a White Paper on value-added tax; and if this will give details of the number of different rates to be applied.
§ Mr. HigginsI would refer the hon. Member to the reply I gave to my hon. Friend the Member for Sudbury and Woodbridge (Mr. Stainton) on 19th November.—[Vol. 826, c. 235.]
§ Miss Quennellasked the Chancellor of the Exchequer whether, in view of the changes in the timetable originally envisaged for the introduction of the value-added tax, he will consider publishing a White Paper shortly giving as much detailed information as possible, to facilitate the smooth introduction of the new measure.
§ Mr. HigginsI would refer my hon. Friend to the reply I gave to my hon. Friend the Member for Sudbury and Woodbridge (Mr. Stainton) on 19th November.—[Vol. 826, c. 235.]
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will obtain from the countries of the European Economic Community details of the various ways in which they operate the value-added tax and publish this information in the OFFICIAL REPORT; and in particular to what extent the operation of the three-tier system of 18 per cent. standard-rate, the reduced rate of 6 per cent. and the top rate of 25 per cent. would affect Great Britain's merchandise if operated on the same basis in this country.
§ Mr. Maurice MacmillanMuch information has been obtained about V.A.T. procedures in the E.E.C. Member States, but owing to the complexity of the detail, its analysis and publication in the OFFICIAL REPORT would involve a disproportionate expenditure of resources without greatly clarifying the United Kingdom issues. For it is not possible to estimate the effect of the tax on the hypothetical basis suggested.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT a table of figures showing to what extent the operation of the value-added tax in Great Britain on the same basis as that now operating in each of the countries of the European Economic Community would increase or 305W reduce the prices of admission into all forms of sport and entertainment; and how it would affect house repair bills, a three piece suite, a hotel bill, a used car, and a child's crib.
§ Mr. HigginsNo; it would require a disproportionate expenditure of resources to prepare estimates on the lines requested of the hypothetical changes envisaged in the Question.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will make a statement showing how the introduction of value-added tax in Great Britain will have to be aligned with the operation of the value-added tax in the countries of the European Economic Community in the event of Great Britain's entry into the Community; and whether in the event of Great Britain signing the Treaty of Rome, Parliament would be able to refuse to accept both the principle and the operation of the value-added tax.
§ Mr. HigginsThe member States of the E.E.C. have agreed to adopt the value added tax system of turnover taxation, but they remain free to determine their own rates and coverage. As members of the E.E.C. we would, of course, be able to play a full part in any decisions on harmonisation. The Government have decided to introduce a value added tax in this country on its merits, independently of the requirement to adopt the value added tax system that membership of the E.E.C. would bring.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether, in view of the concern felt by the representatives of all types of sport, and the entertainment industry over the application of the value-added tax; if he will give an assurance that whether or not Great Britain enters the European Economic Community this tax will not be imposed.
§ Mr. HigginsDecisions on the coverage of the value-added tax will be announced in due course.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether before seeking to introduce the value-added tax he will arrange to meet and discuss with representatives of the following sporting interests in this country, namely, athletics, boxing, cricket, association football, 306W greyhound-racing, golf, horse-racing, motor sport, rugby league, rugby union, show-jumping, speedway, swimming and tennis, in view of the fact that theese interests are concerned that such a tax would damage these sports.
§ Mr. HigginsConsultations have been taking place with a large number of trade and professional associations on the subject of the value-added tax, on the basis of the Green Paper published at the time of my right hon. Friend's Budget last March. As my right hon. Friend made clear to the House in his speech in the debate on the Address, the inclusion of the V.A.T. legislation in the Finance Bill will allow time for further consultations.