§ Mr. Stanbrookasked the Chancellor of the Exchequer whether he is aware 22W of the situation whereby a silver clasp added to a necklace makes the whole article liable for VAT at the highest rate whereas a cloth coat trimmed with fur is not so liable; and if he will take steps to alter this situation.
§ Mr. Robert SheldonFollowing the practice of successive administrations under purchase tax, we have not regarded cloth coats merely trimmed with fur as less essential items to be charged at the higher rate of VAT. The same considerations do not apply to articles of jewellery which unlike clothing represents less essential consumer expenditure. My right hon. Friend has no plans to alter the situation.
§ Mr. Stanbrookasked the Chancellor of the Exchequer why so-called Asian sweets have been reclassified for VAT purposes as food and thus exempt from tax, whereas ice cream, with similar characteristics of origin, use and purpose, is classified as confectionery and subject to tax.
§ Mr. Robert SheldonAsian "sweets" are not confectionery items but are more akin to certain cakes, which are zero-rated.