§ 19. Sir Harmar Nichollsasked the Chancellor of the Exchequer what estimated income will accrue to revenue from the value-added tax on the live theatre.
§ Mr. HigginsAt a tax rate of 10 per cent. this is likely to be between £3 million and £4 million in a full year.
§ 27. Mr. Torneyasked the Chancellor of the Exchequer whether he will arrange for visual aids, films, television, Press and radio material to explain value-added tax to the general public and to traders.
§ Mr. HigginsA publicity and information campaign designed to ensure that the tax will be fully understood is being planned. We are considering the use of all suitable media.
§ 29. Sir G. Nabarroasked the Chancellor of the Exchequer whether he will make a statement concerning representations made to him for exemption from value-added tax on the live theatre.
§ Mr. HigginsMy right hon. Friend has received over 100 representations from theatrical associations, theatre managements, local dramatic societies and other interested parties, asking for relief from value-added tax. But VAT is in principle a comprehensive tax.
§ 31. Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that on the introduction of the value-added tax an additional 1½million traders will have to register as against the existing 74,200 registered for purchase tax as at 31st March, 1971; and what he estimates, on the basis of the 74,200 traders now paying purchase tax, are the costs involved in collecting from 1½ million traders.
§ Mr. HigginsI would refer the hon. Member to the answers I gave to him on 11th and 12th April. It is not possible to gain a precise estimate of the cost at this stage.—[Vol 834, c.153, 1259.]
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§ 32. Mr. Stanbrookasked the Chancellor of the Exchequer if he will make a statement on the representations he has received from the Chairman of the Bar Council and the President of the Law Society concerning the character of certain of the rules for value-added tax.
§ Mr. HigginsThere will be opportunities for discussion of these matters during the debates on the Finance Bill.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that on the introduction of value-added tax there will be one and a half million traders who will have to register; and to what extent he estimates this will increase the cost-of-living index figure.
§ Mr. HigginsSomething like one and a half million traders may be registered. Since the tax accounts they will need to keep can be based on their existing accounting systems, their administrative costs should not be greatly increased and there should be no significant effect on the cost-of-living index on that account.