§ Mr. Wigley
To ask the Chancellor of the Exchequer, what representations he has had from Oxfam concerning the effect of value added tax regulation changes on its fund-raising capability; and if he will state what steps he proposes to take which will help offset any losses which may reduce the capability of Oxfam, and other similar voluntary bodies, to undertake their work.
§ Mr. Lilley
I have received no representations from Oxfam about the new VAT exemption for charity fund-raising events which my right hon. Friend announced in his Budget speech on 14 March and which came into effect on 1 April. I have, however, received a number of representations from Oxfam supporters about the EC Commission's proposals for tax approximation by 1992, which would mean an end to the present VAT zero-rating for donated goods sold in charity shops. These proposals require the unanimous agreement of all member states and the Government will not accept proposals which remove our ability to retain zero rates.