§ Dr. McDonaldasked the Chancellor of the Exchequer how much revenue is raised by every extra 1 per cent. in excise duty on (a) beer, (b) wine, (c) spirits and (d) tobacco; and what is the effect on the retail price index in each case.
§ Mr. Peter Rees[pursuant to his reply, 19 May 1980, c. 44]: One per cent. increases in specific rates of excise duties would produce approximately the following amounts of additional revenue (including VAT) in a full year:
£ million Beer 12 Wine 4 Spirits 3 Tobacco 16 The estimate for tobacco includes also the additional yield from the ad valorem duty on cigarettes which would accrue from an increase in the specific rate of duty.
In each case, the effect on the Index of Retail Prices of a 1 per cent. increase in the rate of specific duty would be negligible.