HC Deb 23 January 1973 vol 849 cc59-61W
12. Mrs. Sally Oppenheim

asked the Chancellor of the Exchequer what steps he intends to take to ensure that the public understand the effect of tax changes on the introduction of value added tax.

Mr. Barber

As requested by my hon. Friend and others, there will be an extensive public information campaign, in the Press and on TV, about the introduction of VAT and the abolition of purchase tax and SET.

This campaign will follow the Budget, and what we shall do is to give the nation the facts. We shall therefore be giving examples of a wide range of key goods and services showing how their prices may be expected to change as a result of the introduction of value added tax and the abolition of purchase tax and selective employment tax.

24. Mr. Judd

asked the Chancellor of the Exchequer what representations he has received from the National Council of Social Service and from other individual charitable organisations concerning the impact of VAT on charities, and the impact when introduced of the new unified income tax at a basic rate of 30 per cent. on covenanted income of charities; what replies he has sent; and whether he will make a statement.

Mr. Patrick Jenkin

So far as VAT is concerned, I would refer the hon. Member to the answer I gave to my hon. Friend the Member for Macclesfield (Mr. Winterton) on 28th November last. A number of charities have written about the effect of the unified income tax system and my right hon. Friend is also considering representations from the National Council of Social Service.—[Vol. 847, c. 66.]

Mr. Sheldon

asked the Chancellor of the Exchequer if he will now make a statement on the zero rating for value added tax of children's shoes.

Mr. Higgins

I would refer the hon. Member to the reply given earlier today to the hon. Member for Derby, South (Mr. Walter Johnson).

Mr. Gorst

asked the Chancellor of the Exchequer if he is aware that it is physically impracticable to pass on VAT to consumers when levied on coin-operated machines other than gaming machines; and whether he will take steps to ensure that operators of such machines are not in consequence penalised by VAT.

Mr. Higgins

It is inherently difficult for operators of certain coin-operated machines to take account of small changes in operating costs, whatever the reason for the change. They have, however, dealt with the problem in the past and I see no need to make special arrangements in relation to VAT.

Mr. Biffen

asked the Chancellor of the Exchequer if he will make a statement on Government policy towards the proposal that foodstuffs should be subject to a negative or reverse rate of value added tax rather than the proposed zero rating.

Mr. Higgins

The Government's proposals for dealing with food prices are outlined in the recent White Paper—the Programme for Controlling Inflation: The Second Stage (Cmnd. 5205). I do not believe that a negative or reverse rate of VAT on food, which would have the effect of subsidising food across the board, would be the right course of action.

Mr. Joel Barnett

asked the Chancellor of the Exchequer if he will issue an order under the Finance Act 1972 authorising the Customs and Excise to insist on all firms selling direct to the public indicating, by a tag or such other method of marking as is considered necessary on each item sold, whether or not it is subjected to VAT; and if he will make a statement.

Mr. Higgins

There is no provision in the Finance Act 1972 for making such an order.

Mr. Joel Barnett

asked the Chancellor of the Exchequer if he will make a statement on the administration of VAT, including registration, arising from the expressed dissatisfaction with its pay and workload by the Civil Service Association.

Mr. Higgins

Although registration for VAT started slowly, the rate of applications is now steadily increasing, and the preparations for the introduction of VAT are proceeding satisfactorily. I consider that the present staffing arrangements and those planned for the future are adequate. The administration of the tax will be kept under continuous review and any essential changes, including staffing, will be promptly undertaken.