HC Deb 26 October 1971 vol 823 cc281-2W
27. Mrs. Doris Fisher

asked the Chancellor of the Exchequer what representations have been made on the subject of purchase tax-paid stocks held by retailers w hen value-added tax is introduced; and if he will make a statement.

38. Sir G. Nabarro

asked the Chancellor of the Exchequer whether he will issue, in appropriate form, assurances to traders that they will not lose sums paid in purchase tax on their stocks when the switch to value-added tax occurs in 1973.

Mr. Patrick Jenkin

We have received a number of representations that there should be relief in respect of purchase tax paid on such stocks. These are being studied, and an announcement will be made in due course.

42. Mrs. Doris Fisher

asked the Chancellor of the Exchequer whether he will include in his examination of value-added tax the need to introduce statutory price control on the introduction of the tax.

Mr. Maurice Macmillan

I do not accept that there is any such need. In any case, the effect on prices of the replacement of purchase tax and S.E.T. by a value-added tax will depend on the rates of the new tax which have not yet been decided.

Mr. Grylls

asked the Chancellor of the Exchequer what steps will now be taken to avoid the disruption of trade, due to purchase tax and revenue duties that will have already been paid on stocks of goods already on hand when value-added tax is introduced; and what account he has taken of the systems of relief operated by members of the European Economic Community to alleviate this problem.

Mr. Higgins

I would refer my hon. Friend to the answer given by my hon. Friend, the Financial Secretary earlier today to the hon. Member for Birmingham, Ladywood (Mrs. Doris Fisher) and my hon. Friend the Member for Worcestershire, South (Sir G. Nabarro). We shall, of course, take the experience of other countries, where this is relevant, into account in reaching a decision.

Mr. Skeet

asked the Chancellor of the Exchequer whether he will consider the introduction of a rate system of value-added tax with the minimum of administrative detail to avoid an increase in costs which would affect the level of services.

Mr. Higgins

Yes.