§ Mrs. Peacock
asked the Chancellor of the Exchequer if he will give details of the compositional criteria on which value added tax is levied on various types of cereal bar biscuits.343W
§ Mr. Brooke
There is no standard list of ingredients which determines the liability to VAT of cereal bars or confectionery generally. Cereal bars are liable to VAT at the standard rate if they fall within the legal provision which charges VAT on "chocolates, sweets and similar confectionery", or on "biscuits and other confectionery (not including cakes) wholly or partly covered with chocolate or some product similar in taste and appearance." It would be impracticable to lay down compositional criteria and individual cases have to be decided on their merits.