§ Mr. Joel Barnettasked the Chancellor of the Exchequer what are the total number of value added tax returns expected for each of the periods ended 30th June 1973, 31st July, 31st August and 30th September; and how many have been received to the latest available date.
§ Mr. HigginsNo precise estimate was made in advance. The numbers that had been received to the latest available date are 468,016, 440,733, 303,964 and 41,524 respectively.
§ Mr. David Steelasked the Chancellor of the Exchequer what representations he has made to the EEC Commission on Article 14 of the new draft sixth directive on value added tax.
§ Mr. HigginsMy officials have drawn the Commission's attention to those features of its proposals in Article 14 which differ from the present practice in the United Kingdom. The Commission's proposals have now been submitted to the 263W Council; the United Kingdom will participate fully in detailed consideration of these. Any decision by the Council must be unanimous.
§ Mr. Sillarsasked the Chancellor of the Exchequer what further consideration he has given to representations made by the Churches Main Committee for all Churches to be given relief from value added tax.
§ Mr. HigginsI have written recently to the committee saying that we shall study with care any further points it may wish to put forward but stating that I cannot hold out any hope that it will be possible to make a concession in this sector of the tax.
§ Mr. Farrasked the Chancellor of the Exchequer if he will zero-rate for value added tax purposes poppy wreaths and poppy emblems sold to promote the Earl Haig Fund.
§ Mr. Thorpeasked the Chancellor of the Exchequer what representations he has received from the Royal British Legion about value added tax applying to poppy wreaths; and what reply he has made.
§ Mr. Higgins"Poppies" are not sold for a specified amount, but given to members of the public who make a donation towards the annual Poppy Appeal. There is no question of anyone having to account for value added tax on the amounts received. These sums are donations and are therefore outside the scope of the tax.
Representations have been made by the Royal British Legion about poppy wreaths. Discussions have taken place with Customs and Excise and I understand that arrangements have now been agreed which the Legion considers satisfactory.
§ Mr. Harperasked the Chancellor of the Exchequer how much the cost of bracelets and necklets, provided by the Medic-Alert Foundation, has increased as the result of the value added tax.
§ Mr. HigginsInformation is not available from official sources on the effect of the tax change on the prices of these articles.
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§ Mr. Harperasked the Chancellor of the Exchequer if he expects the tax yield to be greater by the introduction of value added tax from bracelets and necklets provided by the Medic-Alert Foundation, than the amount received from the former purchase tax.
§ Mr. HigginsI cannot comment on the tax receipts from a particular taxpayer. Purchase tax was chargeable on Medic-Alert bracelets and necklets. At the abolition of purchase tax the rate was 25 per cent., on a wholesale basis, having been reduced from 45 per cent. on 22nd March 1972 and from 55 per cent. on 20th July 1971. On the value added tax basis tax is now chargeable at the rate of 10 per cent.