§ Mr. Bulmerasked the Chancellor of the Exchequer if he is aware of the anomalies existing because of the varied VAT rates for rubber corks; if he will take action to deal with this problem; and if he will make a statement.
§ Mr. Robert SheldonRubber corks sold as such are chargeable at the 8 per cent. standard rate of VAT. Where however the cork is simply part of another article—for example, a bottle of medicine—VAT is chargeable on the whole value of the article at the appropriate rate for that article—zero in the case of medicine. The cork is not charged separately. I do not consider that this is an anomaly.