§ Mr. Oakesasked the Chancellor of the Exchequer how many additional value added tax outlets he estimates will result from the imposition of value added tax on take-away foods.
§ Mr. LawsonThe application of VAT at the standard rate to all supplies of hot food and drink is estimated to result in a small net reduction in the number of traders registered for VAT.
§ Mr. Oakesasked the Chancellor of the Exchequer how many additional staff will be required to administer the taxing of take-away foods.
§ Mr. LawsonThe Commissioners of Customs and Excise intend to employ about 12 additional staff on this work.
§ Mr. Oakesasked the Chancellor of the Exchequer if he will defer the date of implementation of the imposition of value added tax on take-away foods from 1 May to 1 September in view of the high seasonal cost of potatoes in May.
§ Mr. LawsonNo.
§ Mr. Oakesasked the Chancellor of the Exchequer what advice and instructional publicity he will give to traders with take-away food shops who have no experience of collecting value added tax.
§ Mr. LawsonA comprehensive range of guidance is available free from local Customs and Excise VAT offices. It includes simple introductory pamphlets which explain the basic requirements, as well as more detailed guidance on particular aspects of the tax. Details of the application of the tax to hot take-away food and drink have been publicised in Customs and Excise notice BN 2/84. Staff of local VAT offices are available for consultation by traders in any doubt or difficulty.
§ Mr. Oakesasked the Chancellor of the Exchequer if he will exempt from the value added tax regulations for take-away food those bakers' shops whose bread or pies happen to be warm because they are freshly made.
§ Mr. LawsonBread and pies which are sold warm because they happen to be freshly baked, and not to enable them to be consumed while still hot, are outside the scope of the extension of the standard rate of VAT announced in the Budget.