§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he will publish a table showing the basis on which credit card companies have their transactions with traders treated for value added tax purposes in each member state of the EEC and the extent to which these various practices are consistent with the changes proposed for British credit card companies in the recent Budget.
§ Mr. HayhoeThe position is understood to be as follows. These transactions are exempt in the other member states with value added taxes; Greece has not yet introduced a value added tax. But Belgium, Germany and France permit card companies to elect to treat their supplies as taxable, an option available to member states under the European Community's sixth directive on value added tax. The change proposed by my right hon. Friend provides for these transactions to be exempt in the United Kingdom. But as the change is intended to raise revenue, the introduction of the option mentioned above is not appropriate.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what information he has on the yield to the 364W revenue in corporation tax, value added tax and other taxes, respectively, in consequence of the activities of credit card companies.
§ Mr. HayhoeI regret this information is not available.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer if he is satisfied that the changes proposed in the Budget for the value added tax treatment of credit card transactions are consistent with the sixth directive on value added tax of the Common Market Commission; and if he will make a statement.
§ Mr. HayhoeYes.