HC Deb 25 January 1972 vol 829 cc358-60W
35. Mr. Douglas

asked the Chancellor of the Exchequer if he will place in the Library, as soon as they are available, samples of the forms which retailers will have to complete on the introduction of value-added tax.

Mr. Patrick Jenkin

Yes, when the actual format of each has been decided.

Mr. Whitlock

asked the Chancellor of the Exchequer (1) if he will give an assurance that when the proposed value-added tax is introduced no goods will be presented to the public bearing both value-added tax and purchase tax;

(2) if he will give an assurance that the form and scope of value-added tax will be known well enough in advance of its introduction to ensure that manufacturers, wholesalers and retailers do not, out of fear of double taxation on goods, rundown stocks and thereby create shortages and further unemployment.

Mr. Higgins

I would refer the hon. Member to the reply given to the hon. Member for Stirling and Falkirk Burghs (Mr. Ewing) on 24th January.

Mr. Whitlock

asked the Chancellor of the Exchequer if he will give an assurance that discussions between trade and professional organisations and Customs and Excise on value-added tax are intended to lead to a long enough period of preparation, and a suitable date of introduction of the tax, to ensure that firms, large and small, are properly prepared for the operation of the tax.

Mr. Higgins

The timetable for the introduction of value-added tax has been arranged with this in mind.

Mr. Whitlock

asked the Chancellor of the Exchequer whether, when value-added tax is introduced, there will be any relief in cases of bad debt.

Mr. Higgins

Representations have been made about this and they are being carefully studied, but my right hon. Friend is not yet ready to announce a decision.

Mr. Whitlock

asked the Chancellor of the Exchequer whether, in cases of goods passing from one company to another within a group, these transactions will be zero rated for value-added tax purposes.

Mr. Higgins

I will bear the hon. Member's point in mind.

Mr. Whitlock

asked the Chancellor of the Exchequer whether special arrangements will be made when value-added tax is introduced in cases of long-term contracts in the forward costing of which the impact of value-added tax was unknown.

Mr. Higgins

I will bear the hon. Member's point in mind.

Mr. Whitlock

asked the Chancellor of the Exchequer whether, when value-added tax is introduced, there will be clear definitions of what is taxable and what is not taxable, so as to ensure, for example, what constitutes a book on which tax may not be chargeable and what constitutes an advertising brochure on which tax may be chargeable.

Mr. Higgins

I will bear the hon. Member's point in mind.