§ Mr. Freudasked the Secretary of State for Trade and Industry whether his Department has made a study of the potential effects on the book and publishing industry of an imposition of value added tax at (a) the current rate and (b) 5 per cent.; and if he will make a statement on his findings.
§ Mr. Norman Lamont[pursuant to the reply, 25 October 1984, c. 656]: The Government have no present plans to introduce VAT on books, newspapers or periodicals. They do, however, have a commitment to shift the general burden of taxation from taxes on earnings to taxes on spending.
I understand, however, that the publishing industry has done some work on the possible effects of introducing VAT on books, and I have arranged to meet, at its request, representatives of the industry shortly.