Clause 25 - Relief from vat on acquisition if importation would attract relief
Finance Bill
11:15 am
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
I do not see what has changed or what the cash flow advantage is for importers. The explanatory notes state:
''Clause 25 inserts a new section 36A into the VAT Act. This gives a power to the Treasury to provide by order that no VAT will be payable on an acquisition of goods in the UK from another European Union Member State where VAT would be relieved on the importation of the same goods into the UK from outside the European Union.''
I really do not see what the Secretary of State's correspondent has to fear from the measure. I will certainly draw this particular exchange to the attention of the correspondence unit of the DTI, and I hope that
the correspondent will find it of some comfort. If he does not, he can write to ''Dear Paul'', and I shall reply as best I can.