§ Mr. Jim Spicerasked the Chancellor of the Exchequer if he will consider zero rating value added tax on solar heating for all purposes, not just domestic use.
§ Mr. Peter ReesI will let my hon. Friend have a reply as soon as possible.
§ Mr. Jim Spicerasked the Chancellor of the Exchequer if he will consider zero rating value added tax on thatching.
§ Mr. Peter ReesI will let my hon. Friend have a reply as soon as possible.
§ Mr. Marlowasked the Chancellor of the Exchequer what relief the Government intend to give to organisations which have issued tickets and publicity information for value added tax inclusive prices at the level of value added tax ruling before the Budget.
§ Mr. Peter ReesI will let my hon. Friend have a reply as soon as possible.
§ Mr. Beithasked the Chancellor of the Exchequer what consideration he has given to the impact on the launderette industry and its many poor customers of the increase of value added tax.
§ Mr. Peter ReesCareful consideration has been given to a number of representations seeking relief from VAT made on behalf of the launderette industry, following the Budget Statement, but it would not be appropriate to single out launderette services for special treatment in the context of a broadly based tax.
§ Mr. Lathamasked the Chancellor of the Exchequer if he will state the numbers of prosecutions of payers of value added tax for intent to deceive over the last five years, in each of the following categories of alleged underpayment of tax: £0 to £1,000, £1,000 to £2,500, £2,500 to £5,000, £5,000 to £10,000, £10,000 to £50,000 and over £50,000.
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§ Mr. Peter ReesThe records of prosecutions do not distinguish between registered persons who normally pay VAT and those who regularly claim repayment of the tax. The prosecutions of registered persons for fraudulent evasion of VAT or false declarations during the five years ending 31 March 1979 can be categorised as follows:
Amount of tax involved in prosecution and number of prosecutions 0–1000 15 1,000–2,500 41 2,500–5,000 92 5,000–10,000 87 10,000–50,000 77 Over 50,000 12
§ Mr. Dodsworthasked the Chancellor of the Exchequer how many refunds to businesses from the VAT office at Southend have been delayed due to the dispute involving staff; and what were the amounts involved in each calendar month since the strike began.
§ Mr. Peter ReesSome 400,000 VAT repayment claims accumulated during the period from 23 February to 15 May when the VAT computer in Southend was completely shut down by industrial action. It is estimated that a further 450,000 repayment returns will eventually have been subject to some delay during issue and repayment which could be attributed, directly or indirectly, to the industrial action.
By the end of June, £699 million of delayed repayments had been made. It is not possible to allocate this sum precisely by months but it is estimated that, but for the strike, about £50 million would have been repaid in February, about £225 million in March, £175 million in April and £250 million in May.
§ Mr. Dodsworthasked the Chancellor of the Exchequer if he will make a further statement on the dispute involving staff at the VAT central computer at Southend and the effects of the delay to the payment of refunds due to businesses.
§ Mr. Peter ReesThe Customs and Excise VAT computer at Southend was shut down by industrial action from 23 February to 15 May. The normal processing of some 400,000 repayment returns which accumulated during this period was completed by 31 May the680W great majority of the claims being cleared by credit transfer through the banks and National Giro or by payable orders.
During the period of industrial action the issue of blank return forms to taxable persons also had to be suspended but since the full return to work on 16 May everything possible has been done to rectify the position. Customs and Excise has now completed the issue of VAT return forms for the tax periods ended 31 March, 30 April and 31 May, and the issue of return forms for the tax period ended 30 June has commenced. As explained in a "Notice to all persons registered for VAT" published in the national press on Wednesday 23 May, the dates by which these returns are to be furnished have been extended.
§ Mr. Christopher Priceasked the Chancellor of the Exchequer what would be the cost to the Exchequer of exempting female sanitary goods from value added tax; and whether he will make such an exemption.
§ Mr. Peter Rees, pursuant to his reply [Official Report, 3 July 1979, gave the following answer:
The cost of relieving female sanitary goods from VAT would be about £8 million in a full year. However, in a broad based tax these goods should bear VAT in common with other toilet requisites, many of which are regarded as necessities either by men or by women.