§ Mr. Geoffrey Finsbergasked the Chancellor of the Exchequer whether he will consider making changes in the value added tax special schemes for retailers.
§ Mr. HigginsWe have carefully considered representations about those schemes and now propose to introduce two changes.
First, there will be a modified version of scheme 2, available to all retailers whose total taxable turnover does not exceed £50,000 a year. It will be the existing scheme 2 without the ⅛ addition.
Second, in all the special schemes retailers will have an option to use a differing definition of "gross takings from the one given in Customs and Excise Notice No. 707. The difference will be that if traders prefer all supplies to account customers may be included in gross takings at the time when the customer is debited, instead of at the time when he or she pays the account.
Customs and Excise will be issuing a supplement to Notice No. 707 explaining these changes fully, and also a special leaflet for small retail businesses explaining the modified scheme 2.
We shall, of course, keep the operation of all special retail schemes under close review.
§ Mr. Cordleasked the Chancellor of the Exchequer whether he intends to reduce customs and excise duties on the introduction of value added tax; and how wine will be affected.
§ Mr. HigginsAs my right hon. Friend indicated in his last Budget Statement, he cannot decide upon the appropriate levels of taxation on revenue duty goods in the financial year 1973–74 until he has made an assessment of the general economic and financial situation nearer the time.