§ Mr. John HughesTo ask the Chancellor of the Exchequer if he has any plans to impose value added tax on the sale of used goods; what representations he has received on this matter from Oxfam and other charities; and what assessment he has made of the implications of such a move for the work of major international charities.
§ Mr. Lilley[holding answer 25 July 1988]: My right hon. Friend the Chancellor of the Exchequer has no plans to alter the present zero rating for goods donated to charity shops. My right hon. Friend has received a number of representations from Oxfam and its supporters about the implications for this zero rate of the EC Commission's proposals for tax approximation by 1992. My right hon. Friend has made it clear that, while the Government are committed to the completion of the single market, they do 169W not believe tax approximation to be a necessary part of that process and will reject any proposals which restrict the United Kingdom's ability to retain zero rates.