§ Sir Trevor SkeetTo ask the Chancellor of the Exchequer when the Government intend to impose a value added tax on water; and to which description of consumer it will apply.
§ Mr. RyderIn order to comply with a judgment of the European Court, the provisions of section 19 of the Finance Act 1989 extend the standard rate of VAT to supplies of water used in connection with certain industrial activities with effect from 1 July 1990. Supplies to domestic consumers will remain zero-rated.