Value Added Tax

HC Deb 26 July 1976 vol 916 cc33-4W

Mr. Paul Dean

asked the Chancellor of the Exchequer whether he will set up an independent inquiry into the administration of VAT.

Mr. Robert Sheldon

No.

Mr. Lawson

asked the Chancellor of the Exchequer, pursuant to the Financial Secretary's reply to the hon. Member for Blaby concerning value added tax,Official Report, 28th June, column 49, to what figure the £625 million additional revenue shown on line 2 of the table would be reduced if at the same time the higher rate of VAT were reduced to 10 per cent.; and what would be the corresponding figure for the increase in the Retail price index.

Mr. Robert Sheldon

It is estimated that the additional revenue would be about £550 million a year and the increase in the retail price index less than 1 per cent.