§ 33. Mr. Crawfordasked the Chancellor of the Exchequer what is the estimated income to the Treasury from VAT on petrol.
§ Dr. GilbertI would refer the hon. Member to my answer on Monday, 21st April to the hon. Member for Warwick and Leamington (Mr. Smith).
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish in the Official Report as detailed a statement as possible giving the rates of VAT on the same types of goods as increased in his recent Budget in each of the countries of the Eight; and to what extent discussions have ensued or are to take place to secure the harmonisation of VAT on these or any other stated goods.
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§ Dr. GilbertThe table below indicates the rate of VAT applied by other member States of the EEC to the items on which the United Kingdom rate of VAT is to be increased to 25 per cent. There are at present no proposals for the harmonisa-
Group Belgium per cent. Denmark per cent. France per cent. Germany per cent. 1. Domestic electrical appliances … … 18 15* 20 11 2. Television sets … … 25 15* 20 11 Radios, gramophones, tape recorders. 25 15* 33⅓ 11 3. Boats … … 25 15 20 11 Aircraft … … 25 15 20 11 4. Caravans … … 25 15 20 11 5. Photographic equipment … … 25 15 33⅓ 11 Binoculars etc. … … 18 15 20 11 6. Furs … … 25 15 33⅓ 11 7. Jewellery‡ … … 25 15 33⅓ 11
Group Ireland per cent. Italy per cent. Luxembourg per cent. Netherlands per cent. 1. Domestic electrical appliances. … … 19.5 12 10 16 2. Television sets … … 36.75† 30 10 16 Radios, gramophones, tape recorders. … … 36.75† 30 10 16 3. Boats … … 19.5 30 10 16 (large power boats, other at 12 per cent.) Aircraft … … 19.5 30 10 16 4 Caravans … … 19.5 12 10 16 5 Photographic equipment … … 19.5 30 10 16 Binoculars etc. … … 19.5 12 10 16 6 Furs … … 19.5 30 10 16 7. Jewellery‡ … … 19.5 30 10 16 * Denmark imposes an additional tax on these items outside VAT. †The top Irish rate is imposed at the manufacturing level only. ‡In France, Italy and Belgium a distinction is made between different classes of jewellery.
§ Mr. Robert Taylorasked the Chancellor of the Exchequer what rate of VAT is chargeable on a U11 battery if supplied for use with a photographic viewer or, alternatively, for use with a torch.
§ Dr. Gilbert8 per cent. in either case. I regret that in reply to the right hon. and learned Member for Surrey, East (Sir G. Howe) on 16th April—[Vol. 890, c. 580]–1 inadvertently stated that batteries were included among the parts to be chargeable at the higher rate of VAT. In fact batteries are specifically excluded from the higher rate by Item 5, paragraph (c) of Group 1 of the Table in Resolution No. 16 and by corresponding items in Groups 2, 3, 4 and 5. They will, therefore, remain chargeable at the standard rate of 8 per cent. when the higher rate comes into effect on 1st May.
368Wtion within the EEC of rates of VAT on these or other items. Proposals for the harmonisation of the structure and overall coverage of the tax are at present under discussion.
§ Mr. MacFarquharasked the Chancellor of the Exchequer what proportion of VAT revenue was spent on administering the tax in the tax year 1973–74 and the tax year 1974–75; and how the administrative costs compare with the administrative costs of collecting other taxes.
§ Dr. GilbertIt is estimated that the proportions were 2.4 per cent. in 1973–74 and 2 per cent. in 1974–75. Similar proportions for other taxes in 1973–74 were: all Customs and Excise taxes and duties, 1.35 per cent.; all Inland Revenue duties, 1.71 per cent.; vehicle excise duties, 3.88 per cent. The figure for VAT in 1973–74 is unduly high mainly because, the tax being payable in arrear, less than a full year's revenue was collected in the first year of the tax.