§ Mr. Nigel GriffithsTo ask the Chancellor of the Exchequer what is his estimate of the amount of VAT wrongly levied on opticians' services since 1988; and what steps he is taking to ensure that this money is returned to customers. [18730]
§ Mr. Heathcoat-AmoryIt is estimated that the total amount of VAT to be refunded to opticians is of the order of £200 million. Where opticians acknowledge that VAT was passed on to customers, it is for the two sides to agree on the sum to be refunded. Where opticians have absorbed the VAT in their profits, they are under no obligation to pass on the refund to customers. Customs and Excise has no powers to insist that refunds are made to customers where the optician maintains they are not due.