§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he will take steps to prevent traders who sell goods below the cost of supply being able to reclaim more value added tax than they charge on the sale of these items under the procedure known as loss leading; and if he will make a statement.
§ Mr. BrookeNo. VAT registered traders can generally recover the VAT that they have paid on their business purchases. There is no reason to suppose that this gives rise to problems of distortion if the goods are sold as loss leaders, but, if my hon. Friend knows of difficulties, perhaps he will write to me.