§ 63. Mr. Michael Cocksasked the Chancellor of the Exchequer if he will make a substantial ex-gratia payment to all civil servants involved in making and administering the new value added tax regulations in view of the additional work load and frustration these are creating in the service.
§ Mr. HigginsNo. The Customs are taking on additional staff to deal with VAT and will use the usual methods of payment for extra attendance where this is necessary.
§ Mr. Fauldsasked the Chancellor or the Exchequer whether value added tax will be levied on the subscriptions of any or all of the following artistic charities, namely the National Art-Collections Fund, the Contemporary Art Society, the British Museum Society, the Friends of the Tate Gallery, the Friends of the Ashmolean (Oxford), the Friends of the Fitzwilliam Museum (Cambridge), and the Friends of the Courtauld Institute.
§ Mr. HigginsThe provision by an association of facilities to its members would in general be subject to VAT, but whether the associations referred to by the hon. Gentleman are taxable will depend upon the facts in each particular case.
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§ Mr. Carter-Jonesasked the Chancellor of the Exchequer (1) how many letters he has received asking why articles specially designed for supply to disabled people cannot be exempt from value added tax; and what replies he has sent;
- (2) what representations he has received asking that all disposable incontinence pads not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (3) what representations he has received asking that all bath rails and seats for use in baths or under showers not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (4) what representations he has received asking that all electrically or mechanically adjustable beds specially designed for invalids not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (5) what representations he has received asking that all sanitary pans and similar devices not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (6) what representations he has received asking that all Nelson knives and forks not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (7) what representations he has received asking that all special sound records for the blind not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (8) what representations he has received asking that all surgical dressings not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
266 - (9) what representations he has received asking that all chair lifts and stairs lifts for use with invalid chairs not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent:
- (10) what representations he has received asking that all hearing aids not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (11) how many representations he has received asking that invalid chairs not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (12) how many letters he has received asking that all elastic stockings not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent;
- (13) how many letters he has received asking that all over-bed tables and bed rests not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and if he will make a statement;
- (14) what representations he has received asking that all commode chairs and commode stools not supplied by the Department of Health and Social Security or local authorities shall be free of value added tax; and what replies he has sent.
§ Mr. HigginsMy right hon. Friend has received 38 representations from interested parties about hearing aids, two representations about sound records for the blind and a number of general representations from charitable and other organisations that aids and appliances for the use of the disabled should be relieved from the tax. In reply it has been explained that it is proposed to relieve such items by reference to the circumstances in which they are supplied and not by listing them individually that outside the public sector there would be relief under Schedule 4, Group 13 of the Finance Bill for appliances prescribed by a doctor and dispensed by a pharmacist and for those items supplied in connection with care or medical or surgical treatment at 267W hospitals and other institutions within the scope of Schedule 5, Group 7, item 4 of the Bill.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he has received the communication dated 1st June from the hon. Member for West Ham, North, enclosing a letter from the Director General of the Food Manufacturers Federation Incorporated regarding the effects of purchase tax and value added tax on food; and whether he will make a statement.
§ Mr. HigginsYes. My right hon. Friend explained in his Budget speech why he proposed that those foodstuffs at present subject to purchase tax should be chargeable with value added tax, and the matter has been fully debated at the Committee stage of the Finance Bill.