§ Dr. HowellsTo ask the Chancellor of the Exchequer (1) what assessment his Department made of the likely financial impact of the Value Added Tax (Beverages) Order 1993 on the freshly squeezed fruit juice industry before the order was laid before the House; and if he will make a statement;
(2) what consultations took place between his Department and the freshly squeezed fruit juice industry before his Department laid the Value Added Tax (Beverages) Order 1993 before the House; and if he will make a statement.
§ Sir John CopeTax changes of this nature are not normally discussed in advance. The order followed careful consideration of the relevant factors and is designed to clarify an area of the law where there is now no coherent borderline between directly competing products following conflicting VAT tribunal decisions. It will put all fruit juices, however produced, on the same tax footing so that the VAT system does not favour one competing product over another.