§ 24. Sir C. Taylorasked the Chancellor of the Exchequer whether he will reconsider his decision not to allow toothbrushes and tooth-paste to be zero-rated for VAT.
§ Mr. NottNo. My right hon. Friend carefully reviewed the scope of the tax prior to his 1973 Budget Statement.
§ 27. Mr. Denzil Daviesasked the Chancellor of the Exchequer what is his estimate, assuming a VAT rate of 10 per cent., of the additional annual revenue that would be raised by the imposition of VAT on all sales of new houses, as proposed by the Common Market Commission.
§ Mr. Patrick JenkinAbout £225 million in a full year; but the Commission's proposal provides also for our zero-rating of new houses to continue unless and until member countries agree unanimously to the contrary.
§ 28. Sir R. Russellasked the Chancellor of the Exchequer if he will give an assurance that he has no intention of imposing value added tax on books, magazines or newspapers.
§ Mr. Patrick JenkinMy right hon. Friend has no plan to impose value added tax on books, magazines or newspapers.
§ Mr. Roy Hughesasked the Chancellor of the Exchequer how the regulations vary in respect of value added tax on personal Christmas gifts from friends and relatives overseas compared with the previous purchase tax regulations.
§ Mr. HigginsThe regulations in regard to gifts are substantially the same for value added tax as they were for purchase tax. There are no special provisions relating to the importation of gifts as such.
§ Mr. Roy Hughesasked the Chancellor of the Exchequer whether value added tax is payable on personal Christmas presents imported into this country from relatives and friends overseas.
§ Mr. HigginsYes. Value added tax on imported goods is charged and pay-562W able as if it were a duty of customs, and United Kingdom law, like that of most other countries, provides no exemption from Customs charges for gifts as such, including Christmas presents. There is a strictly limited concession under which Customs officers are able to waive duty and value added tax on bona fide private gifts of small value, other than those of highly dutied commodities such as cigarettes, tobacco or spirits, sent by post to individuals in this country.
§ Mr. Roy Hughesasked the Chancellor of the Exchequer what is the estimated cost of administering the collection of value added tax on personal Christmas presents imported into this country from relatives and friends overseas.
§ Mr. HigginsNo accurate estimate can be made of the cost of collecting value added tax on imported gifts.