§ Mr. McQuarrieasked the Chancellor of the Exchequer, in view of the fact that the cost of collecting value added tax from small business firms exceeds the value of money collected, if he will now take steps to raise the threshold of payment.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 9 July 1979; Vol 970, c. 35], gave the following answer:
No. The net yield of VAT would normally exceed the cost of collection for a trader whose added value is more than £450 or so a year and whose outputs are all liable at the standard rate of VAT.