§ 28. Mr. Loveridgeasked the Chancellor of the Exchequer if he will consider amending the regulations for VAT to allow persons building their own houses to be supplied with the essential materials without the addition of VAT.
§ Mr. HigginsI have noted my hon. Friend's suggestion.
§ Mr. Maddanasked the Chancellor of the Exchequer what progress has now been made with registration for value added tax.
§ Mr. HigginsOver 1 million applications for registration have now been received. Registration is, of course, a continuing process, and the total can be expected to go on rising in the remaining 9W weeks before VAT comes into operation. It now seems clear that the number of traders to be registered initially will be less than the original estimate of 1½ million, because a significant number of potential repayment traders who are below the compulsory registration limit have not opted to register at this stage, and because of other factors such as group registration.
§ Mr. Deakinsasked the Chancellor of the Exchequer what assessment he has made of the indirect effects of VAT on agricultural marketing operations by individual farmers, co-operatives, groups and wholesalers, respectively.
§ Mr. HigginsThe effects of VAT on these activities have been discussed with representative bodies concerned. I do not think that the indirect effect will differ substantially from that on other sections of trade and industry.
§ Mr. Loveridgeasked the Chancellor of the Exchequer whether a person wishing to build his own house himself can register with the Commissioners of Customs and Excise as a trader in order that the essential building materials could be zero rated, thus putting him in a not less favourable position as regards costs, compared with the purchaser of a house built by a building contractor.
§ Mr. HigginsNot under existing legislation, because he would not be making or intending to make taxable supplies in the course of a business carried on by him.