Counter-Inflation Act 1973

12 Introduction of value added tax: temporary power to control prices and charges

(1) Subject to subsection (2) below, the powers conferred on the Minister by this section shall be exercisable, as respects relevant transactions effected on or after 1st April 1973, where he considers it expedient for the purpose of ensuring that prices and charges correctly reflect—

(a) the introduction of value added tax and car tax, and the abolition of purchase tax and selective employment tax, by the [1972 c. 41.] Finance Act 1972;

(b) alterations in the rates of customs and excise duties payable in respect of spirits, beer, wine, British wine, tobacco, matches and mechanical lighters, being alterations first having statutory effect by virtue of Resolutions of the House of Commons made in March 1973 under the [1968 c. 2.] Provisional Collection of Taxes Act 1968.

(2) The Minister shall not exercise the powers conferred on him under this section except so far as appears to him to be necessary to prevent or offset excess prices or charges in relevant transactions effected on or before 30th June 1973.

(3) For the said purpose the Minister may, as respects relevant transactions, restrict any prices or charges for the sale of goods or the performance of services in the course of business.

(4) The powers conferred by subsection (3) above shall be exercisable by order contained in a statutory instrument, or by notice given to the person, or each of the persons, selling the goods or performing the services subject to the restriction.

(5) No order or notice shall be made or given under this section to take effect after 30th June 1973 ; but any such order or notice may be expressed to have effect for any period not exceeding three months, notwithstanding that the period ends after that date.

(6) An order or notice made or given under this section—

(a) may be framed in any way whatsoever ;

(b) may define " relevant transaction " both for the purposes of the order or notice and for the purposes of any provision of this section in relation to the order or notice;

(c) may be varied or revoked by a subsequent order or notice so made or given ;

but the variation or revocation of an order or notice under this section shall not affect liability for any offence committed before the variation or revocation takes effect.

(7) Any person who is designated in accordance with paragraph 2 of Schedule 4 to this Act may perform the Minister's functions of restricting prices and charges by means of the giving of notices under this section.

(8) A transaction shall not be invalid because it involves a price or charge which exceeds the limit imposed in relation to that transaction by an order or notice under this section; but the person paying the price or charge shall be entitled to recover the amount representing the excess unless he is a person who is himself liable to punishment by reason of his having aided, abetted, counselled or procured the offence committed under this Act by the other party to the transaction.

(9) Where an order or notice under this section is contravened, the liability for the contravention attaches to the person selling the goods or performing the services.

(10) There is no contravention of an order or notice under this section if what has been done is authorised by the consent in writing of the Minister; and, in the case of a notice given by a person designated as mentioned in subsection (7) above, the consent in writing of any such person shall have the same effect for the purposes of this subsection as if it had been given by the Minister.