§ Mr. Stephen Rossasked the Chancellor of the Exchequer if he will take immediate steps to ensure that no further demands for value added tax are made on small shopkeepers and other retailers until the long overdue repayments from Her Majesty's Customs and Excise have been made.
§ Mr. Peter Rees[pursuant to his reply, 14 April 1981, c. 104]: No. It is necessary for the normal collection of tax to continue. In the case of retail chemists, however, arrangements are being made to ease the cash flow problems where necessary by means of an enhanced payment on account of the amounts due to be paid to them in respect of National Health Service dispensing.
§ Mr. Iain Millsasked the Chancellor of the Exchequer if he is satisfied that the application of value added tax at the full rate on bloodstock in the United Kingdom is consistent with the Treaty of Rome; and if he will have regard to the different approach taken by Eire and France with a view to ensuring that exporters of bloodstock are not disadvantaged.
§ Mr. Peter Rees[pursuant to his reply, 27 April 1981]; The United Kingdom has, from the beginning of its own VAT, applied the tax at the standard rate to internal supplies of bloodstock and at the zero rate to exports. The value for tax is the full selling price or open market value. That practice is in accordance with the terms of the EC sixth Council directive. The Government considered that the French system of applying VAT to horses on the basis of carcase value is in breach of article 11 of the directive: I understand that the Commission is continuing with proceedings against the French Government under article 169 of the Treaty of Rome. The Irish are entitled to continue their exemption of bloodstock during the transitional period. The transitional derogations allowed under the directive fall to be reviewed during 1982 under article 28.