§ Mr. Wigginasked the Chancellor of the Exchequer (1) what is the extra cost in total to Her Majesty's Customs and Excise of collecting 12½ per cent. rate value added tax over and above the cost of collecting standard rate on the same articles;
(2) how many additional staff have been required by Her Majesty's Customs and Excise to administer the 12½ per cent. rate of value added tax.
§ Mr. Robert SheldonAdditional staff numbers arising from the higher rate of VAT cannot be isolated from those relating to the administration of VAT as a whole, but it is estimated that the equivalent of about 250 staff in Her Majesty's Customs and Excise are now employed in the collection and admini572W stration of the 12½ per cent. rate at an approximate cost of £1.8 million.
§ Mr. Wigginasked the Chancellor of the Exchequer what was the income from value added tax for 12 months, to the latest convenient date, on those goods subject to the 12½ per cent. rate; and what this figure would be had they been subjected to the standard rate.
§ Mr. Robert SheldonIt is estimated that the revenue in 1976–77 from the higher rate of 12½ per cent. was about £550 million. If the standard rate of 8 per cent. had applied to these goods and services the revenue would have been about £350 million.