HC Deb 05 April 1984 vol 57 cc1104-5
12. Mr. Roger King

asked the Chancellor of the Exchequer what is the expected total revenue from vehicle excise duty, duty on petrol, special car tax and value added tax on the purchase of motor vehicles in 1984–85.

Mr. Peter Rees

It is estimated that the total yield will be about £8.9 billion.

Mr. King

I thank my right hon. and learned Friend for that answer. Does it not show the wide gap between what the Government raise in revenue from the motor industry and the motorist and what is spent on behalf of the road user? Can my right hon. and learned Friend explain the relationship between the 25 per cent. tax payable on. a British-made Austin Metro car and the 15 per cent. tax paid on an imported Japanese video?

. Rees

My hon. Friend should recognise that capital expenditure on roads will be up by 20 per cent. next year. As for the relationships between the duties on videos and cars, that is an interesting question, but we should not draw any general conclusions about the way that that might affect the motor industry.

Mr. Beaumont-Dark

Will my right hon. and learned Friend make sure—when dealing with tax arising from motor cars—that the excellent and humane suggestion in the Budget about vehicles for disabled people is not ruined by the Customs and Excise? Is he aware that the revenue wishes to thwart the Chancellor's proposal that cars for disabled people should not be taxed?

Mr. Rees

My hon. Friend is rather harsh on a distinguished and historic Department of State. He has drawn attention to the fact that there will be a vehicle excise duty exemption for the recipients of war pensions and mobility supplement and that there will also be zero rating for VAT and relief from car tax for cars able to take disabled people in wheelchairs.

Mr. Rooker

Does the right hon. and learned Gentleman fully understand that the Customs and Excise is saying that to put into operation the Chancellor's Budget promise the vehicle has to be able to take a stretcher? Is that not ridiculous?

Mr. Rees

The hon. Gentleman is a little confused. This covers cars designed to take both people who are in wheelchairs and those who are on stretchers.