§ 59. Mr. William Hamiltonasked the Chancellor of the Exchequer what progress has been made in the recruitment and training of the additional civil servants needed to administer the value added tax.
§ Mr. HigginsApproximately 4,500 additional staff have been taken on so far by the Customs and Excise Department. Training is keeping pace with recruitment.
§ Mrs. Kellett-Bowmanasked the Chancellor of the Exchequer in view of the slow stock turnover of footwear retailers, whether he will consider taking steps to allow a longer pre-value added tax holiday for the industry, in order to avoid hardship.
§ Mr. HigginsThe new arrangements announced by my right hon. Friend yesterday to avoid double taxation of purchase tax paid stocks on the changeover to VAT should remove any possibility of hardship for the footwear industry.
§ Mr. Donald Stewartasked the Chancellor of the Exchequer whether it is his intention to apply value added tax to 186W transport charges and passenger fares to the Scottish island groups; and if he will make a statement.
§ Mr. HigginsTransport charges for goods carried to the Scottish islands from the mainland will be taxable at the standard rate of value added tax, but this tax will be recoverable as input tax by registered traders. Passenger fares in general will be zero-rated under Group 10 of Schedule 4 to the Finance Act, 1972.