§ Mr. Marksasked the Chancellor of the Exchequer what arrangements are being made to avoid double taxation when value added tax is introduced on goods held by retailers and on which purchase tax has been paid.
§ Mr. HigginsMy right hon. Friend announced on 7th November new proposals for dealing with this transitional problem which have been generally welcomed. There is now no reason for traders to make any price increases on the grounds that they have incurred double taxation as a result of the changeover.
§ Mr. Brayasked the Chancellor of the Exchequer if he will make an early decision upon the tax-free holiday period prior to the introduction of value added tax where it may militate against the production or sale of footwear or other commodities which have an extended manufacturer-to-end sale factor.
§ Mr. HigginsI would refer the hon. Member to the new arrangements for dealing with the transition from purchase tax to VAT announced by my right hon. Friend on 7th November.