§ Mr. Freudasked the Chancellor of the Exchequer what revenue will be produced in one year as a result of applying a 25 per cent. VAT rate on rotary cultivators for garden use.
§ Dr. GilbertI regret that this information is not available.
§ Mr. Freudasked the Chancellor of the Exchequer if he will propose exempting from the 25 per cent. VAT rate rotary cultivators used for commercial purposes by smallholders and horticulturists.
§ Dr. GilbertNo. The higher rate applies only to rotary cultivators which are of a kind suitable for domestic use. Any rotary cultivators which are not of a kind suitable for domestic use remain chargeable at the standard rate of 8 per cent. Tax paid on purchases by a taxable person for the purpose of his business is of course deductible as input tax subject to the normal rules.