§ Dr. Edmund Marshallasked the Chancellor of the Exchequer in what instances a tax at present is payable on another tax.
§ Mr. Peter ReesUnder the Finance Act 1972, value added tax is applied to the value of goods including the following taxes:730W
Car tax, hydrocarbon oil duties, alcoholic liquor duties, tobacco products duty, duties on matches and mechanical lighters and customs duties.The value may also include elements of cost attributable to intermediate taxes such as the national insurance surcharge and vehicle excise duty on business vehicles.
Value added tax is chargeable on the net take of gaming machines and on admissions to bingo clubs. It may therefore be considered to be charged on the gaming machine licence duty element in the net take of gaming machines and on any part of bingo club admission charges which is liable to bingo duty because it is used to enhance prize money.
In addition, since under the Tobacco Products Duty Act 1979 the ad valorem element of the tobacco products duty on cigarettes is charged as a percentage of the retail price, it may be regarded as falling on both the specific element of that duty and on the value added tax.
§ Dr. Edmund Marshallasked the Chancellor of the Exchequer why value added tax is levied on the car tax payable on new cars.
§ Mr. Peter ReesVAT is payable on the car tax because under sections 10 and 11 of the Finance Act 1972 the value for VAT is that which together with the VAT itself equals the full price charged to the customer including elements of duty or other taxation which the price may cover.