Value-added Tax

HC Deb 11 April 1972 vol 834 cc153-4W

45. Mr. Oakes

asked the Chancellor of the Exchequer if he will exempt from value-added tax fees received by solicitors and barristers from the Legal Aid Fund.

Mr. Higgins

There will be opportunity during the debates on the Finance Bill to discuss the value-added tax Schedules.

46. Mr. Oakes

asked the Chancellor of the Exchequer whether, under his value-added tax proposals, a fish and chip shop proprietor who allows his customers to eat within the shop premises will be liable to pay value-added tax.

Mr. Higgins

Yes, if it is a supply in the course of catering as denned in Note 3 on page 48 of the White Paper on Value-Added Tax (Cmnd. 4929).

Mr. Oakes

asked the Chancellor of the Exchequer what revenue he expects to receive in a full year from value-added tax on potato crisps.

Mr. Higgins

Assuming no change in the pattern of sales and a rate of 10 per cent. the yield would be of the order of £7 million.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer to what extent, under the Government's proposals for the replacement of purchase tax by value-added tax, there will be an increase or decrease in the number of traders who will be liable to this tax compared with the present number who are paying purchase tax.

Mr. Higgins

Something like 1½ million traders may be registered for value-added tax; this compares with approximately 74,200 registered for purchase tax at 31st March, 1971.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he will give an assurance that value-added tax will not be imposed upon the users of public conveniences; and how the 10 per cent. service charge will operate in this instance under the present proposals concerning the general implementation of value-added tax on all services.

Mr. Higgins

There will be opportunity to discuss detailed questions of the application of value-added tax during the debates on the Finance Bill.

Mr. Oakes

asked the Chancellor of the Exchequer why he has excluded potato crisps from zero-rated foodstuffs for the purpose of value-added tax.

Mr. Higgins

My right hon. Friend explained in his Budget speech why those foodstuffs at present subject to purchase tax will be charged value-added tax at the standard rate and not be zero-rated