Hotels and Restaurants (Value Added Tax)

HC Deb 27 July 1981 vol 9 cc288-9W

23. Mr. Bright

asked the Secretary of State for Trade if he will seek to require value added tax inclusive pricing for hotels and restaurants.

Mrs. Sally Oppenheim

As I told my hon. Friend the Member for Romford (Mr. Neubert) on 23 July, I propose to make an order under the Prices Act 1974 which will require all but the smallest hotels and restaurants when quoting prices for meals and accommodation to quote the fully inclusive price and to indicate where this is the case that the quoted price includes a service charge. The order will allow other traders to quote a price other than the fully inclusive price for goods or services provided they quote also the amount in money terms of any VAT, other tax or charge payable in addition to the quoted price.