§ Mr. Alfred Morrisasked the Chancellor of the Exchequer what he estimates to be the effect of value added tax on the cost of medical research financed by voluntary organisations.
§ Mr. HigginsNo such estimate has been made but the cost to charities as a whole of the change-over to value added tax is substantially outweighed by the net benefits to them of the concessions made in the last two Budgets.
§ Mr. Alfred Morrisasked the Chancellor of the Exchequer if he will seek evidence from the National Fund for Research into Crippling Diseases on the effect of value 188W added tax on the medical research it sponsors.
§ Mr. HigginsMy right hon. Friend has already received representations from the National Fund for Research into Crippling Diseases on two occasions. He will of course be prepared to consider any further representations made to him.
§ Mr. Martenasked the Chancellor of the Exchequer if he will give an assurance that he will not agree to the imposition of value added tax on periodicals and newspapers in any proposals for harmonisation of value added tax by the Common Market; and if he will make a statement.
§ Mr. HigginsMy right hon. Friend has no plans to impose value added tax on periodicals or newspapers. The Commission's present proposals for a move towards the harmonisation of value added tax systems throughout the Community would allow the United Kingdom to retain all the zero rates which were in force on 1st July 1973 including those on periodicals and newspapers until the Council, by a unanimous vote, were to decide otherwise but not later than the abolition of fiscal frontiers. There would be no obligation on the United Kingdom to abolish any of its existing zero rating unless and until the Commission were to submit proposals to that effect and the Council of Ministers were unanimously to decide to adopt the proposals.