§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT the amounts of value added tax imposed by each of the countries of the Six on aids to the physically handicapped such as artificial limbs, wheelchairs, hearing aids, trusses, &c., where such items are purchased by the users on the open market.
§ Mr. HigginsI understand that in such circumstances these items are generally taxed at the following rates, but the actual rate charged may depend on the circumstances of the supply:
Belgium 6 per cent. France 23 per cent. Germany 5½ per cent. Luxembourg 2 per cent. Netherlands 4 per cent. Italy has not yet introduced a value added tax.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent, from information within his possession, he can give the rate of value added tax placed upon aids to the physically handicapped such as artificial limbs, wheelchairs, hearing aids, trusses, &c., in France and Italy; and to what extent he expects the revenue to be increased or reduced if such rates were imposed in Great Britain on these items on this basis.
§ Mr. HigginsValue added tax has not yet been introduced in Italy. I am informed that in France the rate of tax306W on these items is the standard rate of 23 per cent., but the precise treatment depends not only upon the character of the article, but also upon the circumstances of the supply. Most EEC countries operate some exemptions for certain supplies by medical institutions such as State-run or State-aided, or voluntary hospitals, clinics, nursing homes, etc., but the scope of the exemption varies from country to country. Hypothetical estimates of the yield from value added tax in varying circumstances would involve a disproportionate expenditure of resources.