§ Mr. Cordleasked the Chancellor of the Exchequer what increase would need to be made in the £5,000 exemption limit for VAT in order to restore the limit to the same real value as when VAT was first introduced; and what proposals he has to raise the exemption limit.
§ Dr. GilbertThe exemption level would need to be raised to about £6,500 a year. I cannot anticipate my right hon. Friend's Budget Statement.
§ Mr. Andersonasked the Chancellor of the Exchequer what he estimates to be the cost of preparing, printing and distributing notices to persons registered for VAT; and what, if any, examination has been made by Her Majesty's Customs and Excise of possible savings arising from a more selective approach to the distribution of those notices to registered persons directly affected.
§ Dr. GilbertThe average cost of printing and distributing notices and other information to all persons registered for VAT is roughly £100,000 per issue. No estimate can be made of the cost of preparation, which forms only part of the work of the staff concerned.
A selective distribution is made whenever it is possible to identify the persons directly affected, and the methods and costs of distribution are continuously under review.