Mr. Ted Fletcher asked the Chancellor of the Exchequer what representations he has received on the subject of a 10 per cent. value added tax on the retail selling price of hand knitting yarns; and what estimate he has made into the possible consumer reaction and loss of trade to the industry.
216W
§ Mr. HigginsI have received representations from a trade association, a manufacturer of knitting wools and a retailer about the application of value added tax to hand knitting yarns. The effect of the change in the tax contents of the retail price following the abolition of purchase tax and SET and the introduction of VAT should be small.