§ Mr. Deakinsasked the Chancellor of the Exchequer how the Government will be able to ensure that decreases in costs on new cars resulting from the abolition of SET are taken into account by dealers before they add VAT and the new car tax, since the element of cost represented by SET depends on the dealer's individual circumstances.
§ Sir G. HoweI have been asked to reply.
I am in correspondence with representatives of the trades concerned about their obligation to take into account the dealers' SET saving before adding VAT to the price of a new car. Car tax will be included in the manufacture's price. I shall write to the hon. Member shortly.