§ Mr. Pardoeasked the Chancellor of the Exchequer what assessment he made 208W about the effects of the higher rate of VAT on the horticulture industry when he was considering its introduction.
§ Dr. GilbertFor the general effects of the Budget which will fall in part on the horticulture industry, I would refer the hon. Member to the reply given by my right hon. Friend the Paymaster-General to the hon. Member for Gosport (Mr. Viggers) on 25th April.—[Vol. 890, c. 405–6.] The direct effects of the higher rate of VAT on the industry should be negligible.
§ Mr. Pardoeasked the Chancellor of the Exchequer what is his estimate of the cost for this financial year and next to the horticulture industry of applying the righer rate of VAT to horticultural appliances using electricity and internal combustion engines.
§ Dr. GilbertNo estimate is available but the amount involved should be small. VAT on purchases by a taxable person for the purpose of his business is, of course, deductible as input tax subject to the normal rules.