§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he has any proposals for making Kruger and sales subject to value added tax.
§ Mr. Peter ReesI have no such plans at present.
§ Mr. Austin Mitchellasked the Chancellor of the Excequer for what reasons Kruger and sales are not subject to value added tax.
§ Mr. Peter ReesSince the inception of the tax the sale of gold coins which are legal tender in their place of issue has
254Wfrom central Government but the total or composition of their expenditure is not directly approved by Parliament as they operate within a framework laid down by statute. The annual White Paper on public expenditure debated by the House covers spending by local authorities and the financing requirements of nationalised industries.
The total supply expenditure for 1978–79—excluding excess Votes—approved by the House is £46,868,262,000 and the House will shortly be asked to approve a further £60,375,250 in respect of 13 excess Votes. These figures break down as follows:
been regarded as a "dealing with money" and exempt under item 1 of group 5 of schedule 5 to the Finance Act 1972. The EEC sixth VAT directive requires tax to be applied to the supply of coins not normally used as legal tender, but the exemption already in operation in the United Kingdom may continue under the transitional arrangements allowed by the directive.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the revenue which would accrue in the present financial year if Kruger and sales were made subject to value added tax.
§ Mr. Peter ReesBecause VAT is paid in arrears, net receipts in 1979–80 would be very small.