§ Rear-Admiral Morgan-Gilesasked the Chancellor of the Exchequer why water and effluent pumps, which are usually applied in areas where no local authority mains or sewers exist, are included in the higher VAT brackets.
§ Mr. Robert SheldonUnder Item 1 of Group 1 of Schedule 7 to the Finance (No. 2) Act 1975 the higher rate of VAT applies to most goods of a kind suitable for domestic use which are operated by electricity, and this includes most electrically-operated pumps used in the home. There would be no practical ways of excluding from the higher rate pumps used in areas lacking mains water supply or 53W main drainage without also excluding pumps used for less essential purposes. The Budget reduction in the higher rate to 12½ per cent. has, of course, very considerably reduced the differential between the standard and the higher rates of VAT.