§ Mr. Cockcroft
asked the Chancellor of the Exchequer whether he will list the main categories of goods and services zero rated or exempted from value added tax; and if he will estimate the yield from each category.
§ Mr. Robert Sheldon
Supplies of goods and services zero-ated and exempt for VAT are listed in the Value Added Tax (Consolidation) Order 1976 (S.I. 1976/128). The yield from zero-rated items is, of course, nil, as it is from sales of the items in the exempt categories. The exempt categories yield some tax in so far as the tax paid on purchases (input tax) is non-deductible but I am afraid it is not possible to estimate the amount of this input tax.