§ Mr. Fauldsasked the Chancellor of the Exchequer what representations he has received from the Standing Commission on Museums and Galleries regarding the consequences on the public collections of this country of treating works of art under the provisions of value added tax as consumer goods intended for a final purchaser.
§ Mr. Higgins:My right hon. Friend received on 21st April a letter from the Chairman of the Standing Commission in which he expressed the Commission's concern at the possible effect of VAT on museum activities and said that the Commission would be seeking further information from his Department.
§ Mr. Deakinsasked the Chancellor of the Exchequer what is his estimate of the increased revenue which will result from placing education and health in the exempt category instead of the zero-rated category for the purposes of value added tax at 10 per cent.
§ Mr. Higgins:The data necessary to make such an estimate is not available.
§ Mr. Deakinsasked the Chancellor of the Exchequer what is his estimate of the revenue from a 10 per cent value added tax on the supply of rented accommodation by taxable persons.
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§ Mr. Higgins:The Question is hypothetical. Rent, other than rent of hotel rooms and other short-term accommodation, is proposed to be exempt from value added tax.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT a detailed statement giving his estimate of the amount of revenue he estimates receiving from value added tax on entrance fees to association football matches, rugby matches, cricket matches, theatres, boxing, swimming, cinemas; and how he expects this will affect amateur clubs and associations.
§ Mr. Higgins:The expected yields from VAT at 10 per cent. on admissions to association football matches and other spectator sports are £2 million and £750,000 respectively, and from admission to theatres and cinemas about £4 million and £6 million respectively. Most amateur clubs and associations will be exempt from tax under the small trader exemption.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he has received the communication from the hon. Member for West Ham, North, making protest on behalf of the various associations representing the amateur sports of Great Britain regarding the value added tax; what reply he has sent; and whether he will make a statement.
§ Mr. Higgins:My right hon. Friend has received the hon. Member's letter. In reply I have explained that I gave careful consideration to the views put forward by the sports organisations, clubs and societies who have written to me, but my right hon. Friend does not feel able to propose any form of relief from VAT for admissions to sporting events as such.
However large numbers of sports clubs and societies of all kinds will come within the scope of the exemption for organisations whose turnover in taxable goods and services does not exceed £5,000 per annum.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what is the practice with regard to value added tax on wines and spirits in each of the countries of the Six as compared to his proposals for value added tax on British wines and 112W spirits, both home-produced and imported.
§ Mr. Higgins:Following is the information: Value added tax has not yet been introduced in Italy. In the other five countries VAT is applied to wines and spirits at the following rates:
Wines Per cent. Spirits Per cent. Belgium 6 25 France 17.6 17.6 Germany 11 11 Holland 14 14 Luxembourg 10 10 Any revenue duties on these commodities form part of the base on which VAT is computed.
The Finance Bill proposals are that VAT should apply to wines and spirits at the standard rate and that the revenue duties will be part of the VAT base.