§ Mr. Freudasked the Secretary of State for Education and Science (1) pursuant to his reply to the hon. Member for Cambridgeshire, North-East, of 25 October, Official Report, column 601, if he will not make a study of the effect of imposing value added tax on books on students and educational libraries;
998W
§ Mr. BrookeI shall write to the hon. Member.
§ Dr. Godmanasked the Secretary of State for Education and Science if he will place in the Official Report details of the annual intake of new undergraduate and graduate students at each of the Scottish universities since 1975.
§ Mr. BrookeThe information requested is as follows:
(2) why his Department has not made a study of the effect of imposing value added tax on books on students and educational libraries.
§ Sir Keith JosephIt would be impracticable to launch detailed studies on every occasion of speculation about the tax base. However, a broad assessment made by the Department suggests that, on the basis of expenditure by the universities of almost £12 million on books in 1982–83, the application of VAT would amount to £.1.8 million. 999W Since local education authorities are able to reclaim VAT paid on goods and services in respect of their non-trading activities, the application of VAT would not result in any increase in their expenditure.
The effect on students would depend on the amount spent on books by the individual.