§ Mr. Hugh Jenkinsasked the Chancellor of the Exchequer (1) under what circumstances the purchase of iced lollies attracts value added tax;
(2) what amount of value added tax is payable on a box of chocolates costing 30p purchased in a cinema but only half consumed therein.
§ Mr. HigginsCustoms and Excise has issued a Press notice on this subject and I am sending a copy to the hon. Member. Copies are also available in the Library.
§ Mr. Fauldsasked the Chancellor of the Exchequer whether he has received any communications expressing concern over the imposition of value added tax on works of art from the Standing Commission on Muesums; and, if so, whether he will publish both its views and his reply.
§ Mr. HigginsMy right hon. Friend has received no recent communications on this subject from the Standing Commission.
§ Mr. Fauldsasked the Chancellor of the Exchequer whether the amount of value added tax included in the price of a work of art or antique sold under the provisions of the special scheme contained in Customs and Excise Notice No. 172 to a public museum which is a taxable person will be required to be disclosed in order that the museum in question may claim a refund.
§ Mr. HigginsIt is a condition of the scheme that VAT shall not be shown separately on the taxable person's invoice.
Mr. R. C. Mitchellasked the Chancellor of the Exchequer whether VAT is payable on hire-purchase repayments paid after 1st April for goods subject to VAT supplied and delivered before 1st April.
§ Mr. HigginsNo.
19W
Mr. R. C. Mitchellasked the Chancellor of the Exchequer whether VAT is payable on a gas cooker purchased through a hire-purchase agreement concluded before 1st April but not to be delivered and installed until after 1st April.
§ Mr. HigginsYes. If the cooker was not delivered before 1st April VAT is chargeable.
Mr. R. C. Mitchellasked the Chancellor of the Exchequer whether VAT is payable on a gas cooker purchased for cash before 1st April but not to be delivered and installed until after 1st April.
§ Mr. HigginsNo, provided that it has been paid for in the normal course of business before 1st April.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if he will make a statement on the basis for his original estimate that there would be 1,500,000 firms registered for VAT.
§ Mr. HigginsThe estimate given on 11th April 1972 was based on Inland Revenue assessments made in 1969–70, and was subject to a number of uncertainties—for example, in regard to the effect of the small trader exemption from VAT and the number of traders who might voluntarily register for VAT. It is now clear that the working figure of 1½ million was too high as a measure of the initial take-on, the main reason being that whereas the 1972 estimate allowed for rather over 200,000 voluntary registrations among those who were under no legal obligation to register, only a small proportion of that number has in fact so far registered voluntarily. It is, of course, possible that they will opt in later in the year. Other factors such as group registration have also tended to depress the numerical total of registrations.—[Vol. 834, c.153.]