Below is the text of Mr Major’s response on VAT made on 26th April 1990 in the House of Commons.
Mr. Donald Thompson To ask the Chancellor of the Exchequer how many businesses he expects to be helped by his proposed value added tax reforms.
Mr. Major About 1,150,000 businesses should be helped by the proposed new scheme for the relief from VAT on bad debts and most of the 250,000 or so businesses that are expected to register in a year could benefit from the simplified VAT registration requirements.
Mr. Thompson With the rapid increase in the number of businesses in my constituency and throughout the United Kingdom, what steps is my right hon. Friend taking to ensure that businesses which grow to VAT level understand their responsibilities?
Mr. Major I think that the small business sector in recent years has shown that it understands its responsibilities very well. It will also react favourably to the fact that we have the most generous tax structure for small businesses of any country in the European Community.