§ Mr. Roger EvansTo ask the Chancellor of the Exchequer if he will make a statement concerning irrecoverable VAT paid by charities for goods and services.
§ Sir John CopeThere are already a number of VAT reliefs on specific goods and services which are worth some 399W £150 million a year to charities. The Government believe that the best way to help charities through the tax system is by measures to encourage charitable giving rather than by refunding VAT on general goods and services. The amount individuals and companies donate is a better measure of the worth of charities than what they spend on standard rated goods and services.
§ Ms HarmanTo ask the Chancellor of the Exchequer what discussions he has held with charities on the effect of charging VAT on domestic fuel and power on charities.
§ Sir John Cope[holding answer 7 May 1993]: I have received a number of representations from charities on this issue and met the Charities Tax Reform Group on 6 May 1993.