§ Mr. Loveridgeasked the Chancellor of the Exchequer if he will ensure that when any system of value-added tax is introduced, this will not apply to goods held in stock where purchase tax has already been paid on these goods, unless the purchase tax is to be refunded.
§ Mr. HigginsI have nothing to add to the answer given by my hon. Friend the Financial Secretary to the hon. Member for Birmingham, Ladywood (Mrs. Doris Fisher) and my hon. Friend the94W Member for Worcestershire, South (Sir G. Nabarro) on 26th October.—[Vol. 823, c. 281.]
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that a study of value-added tax made for the Commission of European Economic Community has disclosed that a harmonised value-added tax rate of 15 per cent. and a reduced rate of 7.5 per cent. on food and other necessities would adversely affect France and Belgium where the normal rate is 23 per cent.; if he will estimate to what extent adoption of a similar form of taxation will affect the British consumer and the revenue to the Exchequer; and whether he will make a statement.
§ Mr. HigginsI am aware of this study, the conclusions of which are more complex than the hon. Member implies; the answer to the rest of his Question is "No".