§ Mrs. Colquhounasked the Chancellor of the Exchequer what are his reasons for not removing the 8 per cent. VAT on sanitary towels.
§ Mr. Robert SheldonVAT is a broadly-based tax on consumer expenditure with strictly limited reliefs relating800W to broad categories, such as food, domestic fuel and public transport fares. It would be impossible to justify allowing relief for particular articles such as sanitary towels while denying it to the generality of toilet articles, many of which also serve hygienic purposes.
§ Mr. Cordleasked the Chancellor of the Exchequer how many recent representations he has had from individuals or organisations concerning the effect of value added tax upon charities; and whether he will now take steps to alleviate to some extent the difficulties of charities during the present inflationary period by taking steps to enable value added tax paid by them in respect of various goods and services acquired in furtherance of their charitable work to be reclaimed.
§ Mr. Robert SheldonAbout 30 representations have been received since the spring Budget. There are already certain reliefs from VAT benefiting many charities, and in general charities do not have to account for tax on their charitable and social activities. In addition it is estimated that direct Government aid to voluntary organisations will amount to about £20 million in the year 1975–76. I do not consider that further reliefs could be justified.
§ Mr. Gowasked the Chancellor of the Exchequer by what authority local councils charge VAT at the rate of 8 per cent. in addition to the charge which they make for emptying cesspools at domestic properties not connected to main drainage, when no such VAT is payable for this service where properties are connected to main drainage.
§ Mr. Robert SheldonA charge made by a local council for emptying a cesspool is a consideration for a taxable supply of services and is properly liable to VAT under sections 2 and 5 of the Finance Act 1972. This applies equally to a charge made by a private contractor for such services.
§ Mr. Ovendenasked the Chancellor of the Exchequer what will be the cost of increasing the £5,000 VAT limit to a level which restored its real value to that which existed at its introduction.
§ Mr. Robert SheldonAbout £20 million in a full year.
801W
§ Mr. Ovendenasked the Chancellor of the Exchequer what is the value in real terms of the £5,000 VAT limit compared with the time it was introduced; and if he will now increase this limit.
§ Mr. Robert SheldonThe value of the £5,000 VAT registration limit at March 1973 prices is about £3,250. I keep the question of this limit under review but I have no immediate plans to increase it.