§ Mr. Arthur Lewisasked the Chancellor of the Exchequer on what basis the Customs and Excise stopped Mr. Cyril Butler selling petrol at 5p a gallon plus a 50p service charge; whether all retailers of all products must sell their products at market value; and on what basis market value is estimated for all of these products.
§ Dr. GilbertMr. Butler was not stopped from selling petrol in the way described by the hon. Member but was advised that doing so would not reduce the amount of VAT payable as he thought. When goods are sold at a price which is conditional upon the customer's receiving another supply also—whether of goods or of a service—VAT is chargeable on the total open market value of the two supplies.
In the vast majority of retailers' sales, prices are not conditional and VAT is calculated from the actual price charged.