§ Mr. Craigenasked the Chancellor of the Exchequer what the estimated annual contribution which Great Britain will now make to the EEC from the proceeds of a 15 per cent. rate of value added tax is by comparison with the annual amount payable when value added tax was levied at 8 per cent. and 12½ per cent.
480W
§ Mr. Peter Rees[pursuant to his reply, 29 October 1979]: The change in the rates of VAT in the United Kingdom has not of itself affected the amount of own resources payable.
The own resources decision of 21 April 1970 provides for contributions by member States to be paid at a rate not exceeding 1 per cent. of the value of all transactions included in a harmonised base laid down by the sixth Council directive on VAT. The common rate for 1979, specified in supplementary budget No. 2 and applicable to the six member States contributing on a VAT basis, is 0.744399976697 per cent. It is estimated that in 1979 the United Kingdom payment would be about £790 million on a full own resources basis—before allowing for refunds under article 131 of the Treaty of Accession.