§ Mr. Temple-Morrisasked the Chancellor of the Exchequer on what grounds VAT was lifted from the linear scanner recently installed at a Worcester hospital; in particular whether the grounds were different from those applying to other diagnostic medical equipment bought from charitable funds; and whether he will now permanently lift VAT from all medical equipment.
§ Dr. GilbertThe relief from value added tax followed the remission of import duty by virtue of a duty-free direction issued under Section 6 of the Import Duties Act 1958. I have under consideration the suggestion contained in the last part of the Question.
§ Mr. Michael Morrisasked the Chancellor of the Exchequer what additional annual revenue would be produced by an increase of 1 per cent. on VAT.
§ Dr. GilbertAbout £240 million in a full year.