Value Added Tax

HC Deb 24 July 1979 vol 971 cc181-3W

Mr. Foster

asked the Chancellor of the Exchequer if he will take steps to refund excessive tax collected where it can be proved that customers have been overcharged as a result of VAT increases.

Mr. Peter Rees

No question of overcharging customers normally arises, since there is no price control on the great majority of goods and services subject to VAT, and a registered trader is usually free to increase his prices according to his commercial judgment in order to recoup his increased VAT liabilities.

Mr. Foster

asked the Chancellor of the Exchequer if he will arrange for Customs and Excise effectively to inform traders of the correct calculations to apply in levying increases in value added tax.

Mr. Peter Rees

It is for traders themselves to decide when, how and to what extent to recoup their additional liabilities by increases in prices which will not necessarily be uniform across the full range of goods and services supplied, and might be combined with price changes for other reasons.

Mr. Coleman

asked the Chancellor of the Exchequer what representations he has received relating to the practice of certain tour operators in charging clients a surcharge on holidays paid for before the rise in value added tax imposed in his Budget became operative; if there are any practices applied by the Inland Revenue in charging value added tax in such circumstances which would justify the imposition of such a surcharge; and if he will make a statement.

Mr. Peter Rees

I shall let the hon. Member have a reply as soon as possible.

Mr. Alfred Morris

asked the Chancellor of the Exchequer what is the expected yield in a full year from the imposition of value added tax at 15 per cent. on toys specially and exclusively made for the use of disabled children; and if he will consider removing this impost at an early date.

Mr. Peter Rees,

pursuant to his reply [Official Report, 23 July 1979; Vol. 971, c. 56], gave the following answer:

The amount cannot be estimated, but would be small. The supply to disabled persons of most medical or surgical appliances solely designed for them is already relieved of VAT, but the extension of this relief to toys would be difficult to administer and could not be justified.