(East Dunbartonshire)
(SNP):...I understand that there are some reservations about VAT
exemptions, because previous zero ratings have not produced
savings for consumers. That is exactly why, as part of VAT Burn,
I have a pledge for retailers and producers to sign up to. I can
confirm today that Morrisons has
agreed to sign up to it, and, given that Tesco already absorbs
the VAT on sunscreen products, I feel confident that our
constituents will see a saving when it comes to sunscreen, should
the Government choose to back VAT Burn....
The Financial Secretary to the Treasury ():...Colleagues across the
House have rightly commended Tesco for choosing to absorb the VAT
on sunscreen products within its profit margins. I stand with
those Members and encourage other retailers to do the same, if
this is a matter they care deeply about. While I am delighted to
hear that Morrisons will
promise to pass on the cut to customers if this VAT policy is
changed, I gently point out that we would expect it to do that
anyway; perhaps Morrisons should
be encouraged to follow the lead of its market competitor Tesco.
I know not, and I had better not get involved in competition
between supermarkets. However, I would very much hope that
retailers—I am sure they take a close interest in their
customers’ ability to pay—will follow Tesco’s lead...
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