§ Dr. Gilbert
In his Budget speech in March my right hon. Friend expressed the view that the single positive rate of VAT had substantial disadvantages from the point of view of flexibility. On my right hon. Friend's authority, Customs and Excise have consulted representative trade bodies about the procedural changes that would have to be made in the VAT system if additional rates were introduced.
§ Mr. David Steel
asked the Chancellor of the Exchequer if he will grant the same VAT resale concessions to dealers in horses and ponies that are available to dealers in cars, motorcycles, caravans and antiques.
§ Mr. MacGregor
asked the Chancellor of the Exchequer whether he is now able to give the promised reply to the parliamentary Question of 3rd July of the hon. Member for Norfolk, South on what would be the cost of exempting charities and non-profit-making clubs and associations from value added tax.
§ Dr. Gilbert
The services of dispensers of hearing aids registered under Section 2 of the Hearing Aid Council Act 1968 are already exempted from value added tax, as is the supply of hearing aids in connection with such services.
The Hearing Aid Council Act 1968 does not apply in Northern Ireland, but my right hon. Friend the Secretary of State for Northern Ireland announced on 31st July the Government's intention to introduce in this Session legislation to establish the same standard of protection for those buying hearing aids in Northern Ireland as that already afforded in Great Britain by the Hearing Aid Council Act 1968. When this legislation comes into force it is proposed to extend accordingly the exemption from VAT for hearing aid services and hearing aids.
Exceptionally, the supply of hearing aids services and hearing aids by existing dispensers in Northern Ireland is being exempted from VAT extra-statutorily from 11th November until the end of this Session.