§ Sir G. Howe
asked the Chancellor of the Exchequer what is his estimate of the effect on the retail price index, including direct and indirect effects, from the dates 416W the measures take effect, of (1) the imposition of value added tax upon confectionery, soft drinks, ice cream and potato crisps; (2) the imposition of value added tax and other extra duties upon petrol, derv and oil; (3) the imposition of extra tax, duty and value added tax upon tobacco; and (4) the imposition of extra tax, duty and value added tax upon alcoholic beverages.
§ Mr. Dell
The increases in the retail price index in respect of each of the four indirect tax changes listed by the right hon. and learned Member are 0.3 per cent., 0.3 per cent., 0.8 per cent. and 0.35 per cent., respectively. Because in general VAT falls on consumers and not on business costs, and the revenue duties on drink and tobacco similarly fall on consumers, there are no indirect effects on the index to add to the direct effects listed above.