HC Deb 04 March 1976 vol 906 cc712-3W
23. Mr. Wyn Roberts

asked the Chancellor of the Exchequer what increase in revenue he expects in the current year from the 25 per cent. rate of VAT on domestic electrical appliances; and whether this covers unemployment benefit and income tax losses resulting from recession in the industry concerned.

Mr. Denzil Davies

The Budget estimate was £60 million for 1975–76. Any estimate of the loss of income tax and increase in unemployment benefit payable would not be comparable as the recession has not been solely caused by the introduction of the higher rate of VAT.

38. Mr. Banks

asked the Chancellor of the Exchequer whether the consequences of the introduction of multi-rate VAT have met or exceeded expectations in terms of reduced consumption.

Mr. Denzil Davies

We have been monitoring the effects of the higher rate of VAT, but for a statement I would ask the hon. Member to await my right hon. Friend's Budget.

45. Mr. Fred Evans

asked the Chancellor of the Exchequer what representations he has received concerning relief from VAT on specialised equipment for disabled people.

Mr. Denzil Davies

I would refer my hon. Friend to the answer I gave today to my hon. Friend the Member for Eccles (Mr. Carter-Jones).

46. Miss Fookes

asked the Chancellor of the Exchequer how much revenue accrued from VAT on veterinary fees in the last period for which figures are available.

Mr. Denzil Davies

The revenue yield from veterinary services in the year ending December 1974 is estimated at about £2.5 million.

Mr. Cordle

asked the Chancellor of the Exchequer what income has 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 if he will now take steps to raise the exemption limit.

Mr. Robert Sheldon

The exemption limit would need to be raised to £8,200 a year. I will bear the hon. Member's suggestion in mind.

Mr. Albert Roberts

asked the Chancellor of the Exchequer what would be the cost of reducing from 25 per cent. to 10 per cent. the VAT on the repair and servicing of electrical appliances.

Mr. Robert Sheldon

It is estimated that the loss of revenue from reducing to 10 per cent. the 25 per cent. rate of VAT on repairs, servicing and spare parts for domestic electrical appliances, radio and television sets, etc.—groups 1 and 2 of the higher rate schedule—would be about £25 million in a full year.