Value Added Tax

HC Deb 28 June 1973 vol 858 cc376-7W

Mr. Bishop

asked the Chancellor of the Exchequer what further representations he has received regarding the imposition of VAT on building repairs and the effect on the maintenance of buildings of architectural and historic interest and listed buildings; and what replies he has sent.

Mr. Higgins

There have been a number of further representations on this matter. Replies have been sent pointing out that VAT is not a suitable means of promoting specific social aims, however desirable they may be in their own right. To give relief for listed buildings would create anomalies and lead to pressure for relief from VAT for repairs and maintenance of other special classes of buildings and ultimately for all repairs and maintenance on buildings.

Mr. Bishop

asked the Chancellor of the Exchequer, in view of his announcement that VAT replaces purchase tax and SET, if he will give an assurance that only goods or services which bore these taxes are now subject to VAT; and if this is not so, if he will list in the OFFICIAL REPORT those other items which are subject to VAT.

Mr. Higgins

Certainly not. My right hon. Friend has never suggested that the coverage and rates of VAT would be the same as those for SET and purchase tax. The whole point of the changeover was to broaden the tax base and to get rid of the undesirable distortion in the previous indirect tax system.

It would require an excessive expenditure of effort to prepare an itemised list of the type requested.

Mr. Faulds

asked the Chancellor of the Exchequer whether it is his intention that the sale of a share in goods under the special scheme contained in Her Majesty's Customs and Excise notice No. 712 is to be treated as a supply of goods or as a supply of services.

Mr. Higgins

Since the sale of a share in goods leads to joint ownership, I would refer the hon. Member to the reply I gave him on 5th April. If the hon. Member knows of any case where difficulty has arisen, perhaps he will write to me.

Mr. Marten

asked the Chancellor of the Exchequer what proposals have been made by the Common Market Commission relating to Great Britain's freedom to add new items to the list of zero-rated items of 1st April; and if he will make a statement on the British attitude to these proposals.

Mr. Higgins

The EEC Commission has a duty to make proposals to the Council of Ministers for the harmonisation of indirect taxation. I understand that further proposals are about to be submitted to the Council of Ministers and published.