§ Mr. Richard Wainwrightasked the Chancellor of the Exchequer (1) what would be the gain to the Revenue if new building and construction were rated at 15 per cent. for value added tax;
(2) what would be the loss to the Revenue if repairs and maintenance were zero-rated for value added tax;
(3) if he will estimate the rate of value added tax that would have to be charged on all building work whether new construction or repair and maintenance to provide revenue equal to that currently obtained from repair and maintenance work.
§ Mr. Peter ReesIt is estimated that in a full year value added tax at 15 per cent. on new building and construction would raise about £650 million. Zero-rating repairs and maintenance (including materials bought by occupiers for repair work) would cost about £350 million. Value added tax at about 5 per cent. to 6 per cent. on all building work would raise a revenue similar to that currently received at the standard rate from repairs and maintenance.