§ 14. Mr. Ridleyasked the Chancellor of the Exchequer if he will now reduce the 25 per cent. VAT on tanned cowhide skins in view of the fact that only 8 per cent. VAT is levied on tanned goat skins and sheep skins.
§ Mr. Robert SheldonNo.
§ 25. Mr. Costainasked the Chancellor of the Exchequer why 8 per cent. VAT is imposed on suasage seasonings when the finished product is exempt from VAT.
§ Mr. Robert SheldonMost sausage seasonings are regarded as belonging to a class of substances which may be added to food in the course of manufacture, but in themselves are not food. The VAT credit mechanism ensures that such tax paid by food manufacturers can be reclaimed and will not enter into the ultimate price of zero-rated food.
§ 30. Mr. Brothertonasked the Chancellor of the Exchequer what is the rate of VAT on bathroom fittings.
§ Mr. Robert SheldonWhen bought on their own most bathroom fittings are liable to VAT of 8 per cent. They would, however, be zero-rated if supplied in connection with zero-rated building construction or alteration services and if they were of a kind ordinarily installed by builders as fixtures.
§ 42. Mr. Evelyn Kingasked the Chancellor of the Exchequer, in view of the recent evidence sent to him by the hon. Member for Dorset, South showing the adverse effects of the 25 per cent. rate of value added tax on the boatbuilding industry, if he will consider in his present review of the situation a reduction of the rate.
§ Mr. Robert SheldonI have no record of any evidence from the hon. Member, but any evidence will be taken into account along with other relevant information in our review of the effects of the 25 per cent. rate of value added tax which was imposed in the last Budget.
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§ 43. Mr. Budgenasked the Chancellor of the Exchequer what proposals he has to change the law to allow relief from value added tax payable on bad debts.
§ Mr. Robert SheldonI have no present proposals but I am keeping the matter under review.
§ 44. Sir John Rodgersasked the Chancellor of the Exchequer how much it would cost the Exchequer if the levy of 8 per cent. value added tax on insulation materials were to be dropped when the work is carried out by the occupier him self.
§ Mr. Robert SheldonI regret that the information on which to base such an estimate is not available.