§ 9. Mr. Greenwayasked the Chancellor of the Exchequer if he will detail gross value added tax yields in real and percentage terms as a proportion of the total tax take for 1972–73, 1978–79 and 1983–84; and if he will make a statement.
§ Mr. HayhoeSince the answer includes a table of figures I will, with permission, circulate it in the Official Report.
§ Mr. GreenwayWill my hon. Friend confirm that it is the Government's intention to reduce direct taxation, and say how they propose to do it?
Is my hon. Friend aware that the Leader of the Opposition was in his seat on Tuesday when my right hon. Friend the Prime Minister said:
We have no intention of extending VAT to food." — [Official Report, 12 June 1984; Vol. 169, c. 756.]Yet the very next day the Leader of the Opposition asserted that the opposite was the case. It is he who dispensed with the truth—[Interruption]—not the Prime Minister, as asserted by the hon. Member for Fife, Central (Mr. Hamilton).
§ Mr. HayhoeI am glad to underline and reinforce the sensible comments that my hon. Friend has made about the deplorable behaviour of the Opposition in this matter.
§ Following is the information:
§ VAT was introduced on 1 April 1973.
§ The Information for 1973–74, 1978–79 and 1983–84 at 1983–84 prices is as follows:—
£ million (1983–84 prices) | |||
VAT gross receipts | Total Taxation Revenue* | Percentage yield | |
1973–74 | 8,571 | 91,388 | 9.4 |
1978–79 | 9,322 | 100,513 | 9.3 |
1983–84 | 15,992 | 118,012 | 13.6 |
* Total taxation revenue consists of all direct and indirect taxation including local authority rates and national insurance contributions. |