§ Mrs. Jegerasked the Chancellor of the Exchequer why VAT is chargeable on ice cream, but not on prepared cream desserts, Charlotte Russe and similar puddings.
§ Dr. GilbertSome less essential foods are taxed to help pay the cost of reducing the price of more essential goods. My right hon. Friend recognises that an arbitrary element is inherent in any line of demarcation between taxed and untaxed goods, but he considers that the existing arrangement for ice cream operated satisfactorily for 1962 to 1973 under the purchase tax and that he would not be justified in altering it.