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16 Value Added Tax (Higher Rate)

Volume 890: debated on Monday 21 April 1975

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Motion made, and Question,

(1) the following provisions shall have effect from the beginning of May 1975—
  • (a) subsection (1) of section 9 of the Finance Act 1972 shall have effect as if in its application to—
  • (i) a supply which is of a description specified in the Table set out below or is a supply of goods or services of a description so specified, and
  • (ii) the importation of goods of a description so specified.
    • the rate of 25 per cent. ("the higher rate") were substituted for the rate specified in it ("the standard rate"): and any order made under subsection (3) of that section shall apply to both the standard rate and the higher rate;
  • (b) the Table set out below shall be interpreted in accordance with the notes contained in it: and the descriptions of Groups in that Table are for ease of reference only and shall not affect the interpretation of descriptions of items in those Groups;
  • (c) Schedule 4 to the Finance Act 1972 shall have effect as if there were excluded from Item 1 of Group 17 any articles within Item 1 of Group 6 in the Table set out below:
  • (d) section 2 of the Finance Act 1975 shall cease to have effect;
  • (2) such provision as Parliament may hereafter determine may be made for enabling the Treasury to alter the cases in which the higher rate applies.
    But this Resolution shall not authorise the making of amendments that would make value added tax chargeable at more than one rate other than the standard rate.
    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.