Value Added Tax

HC Deb 05 March 1975 vol 887 cc440-1W

Sir J. Eden

asked the Chancellor of the Exchequer whether he can give an assurance that, in connection with any arrangements for the harmonisation of taxes within the EEC, he will ensure that hotel accommodation and restaurant meals should be taxed at a lower rate as is already the case in many EEC countries.

Dr. Gilbert

Proposals in this field at present under discussion do not include the harmonisation of rates of value added tax.

Sir J. Eden

asked the Chancellor of the Exchequer whether, in view of the importance to the country of the tourist trade, he will now arrange for identified sales of hotel accommodation to foreign visitors to be zero rated.

Dr. Gilbert

I have noted the right hon. Member's suggestion.

Mr. Cyril Smith

asked the Chancellor of the Exchequer what is the total cost incurred by the Customs and Excise in the collection of VAT in any one financial year.

Dr. Gilbert

It is estimated that the total cost of collection of VAT in 1973–74 was about £35 million.