HC Deb 30 March 1976 vol 908 cc447-8W
Mr. Ralph Howell

asked the Chancellor of the Exchequer what is the total annual amount of revenue received from VAT chargeable on petrol, and what percentage of this amount is reclaimed by the purchaser.

Mr. Robert Sheldon

It is estimated that net receipts from VAT on petrol are about £400 million a year. This is the yield after deduction of the tax paid by persons registered for VAT on petrol supplied to them for use in their business. Because registered persons are not required to make returns of the input tax paid by them on supplies of particular goods and services the total amount of these deductions is not available.

Mr. Henderson

asked the Chancellor of the Exchequer what he estimates would be the loss of revenue and saving in administration if the exemption level for VAT were raised to: (a) £10,000, (b) £15,000, (c) £20,000, (d) £25,000, and (e) £30,000.

Mr. Robert Sheldon

I would refer the hon. Member to the replies given to the hon. Member for Basingstoke (Mr. Mitchell) on 6th February. If the exemption level were raised to £30,000 it is estimated that the loss of revenue would be about £120 million.