Orders of the Day — Budget Resolutions and Economic Situation

Part of the debate – in the House of Commons at 12:00 am on 16 April 1975.

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Photo of Mr Jeremy Thorpe Mr Jeremy Thorpe , North Devon 12:00, 16 April 1975

This is a very important point. Is the hon. Gentleman merely saying that VAT will be charged at 25 per cent. on specific spare parts, or that 25 per cent. will be charged on the whole servicing bill? If it is the latter, he will be aware that if the customer pays the 25 per cent. to buy the item and 25 per cent. for three services, it will be 100 per cent. of the cost, which is paid by the taxpayer.