§ Mr. Spenceasked the Chancellor of the Exhequer, using any convenient business classification available, what is the critical turnover with respect to value added tax where the cost of collection about equals the amount of tax assessed; and if he will make a statement.
§ Mr. Bruce-GardyneThe amounts of VAT paid to Customs and Excise by registered traders are not dependent upon turnover but upon the difference between the amount of VAT charged on the goods and services they sell and on those they buy. The net yield of VAT would normally exceed the cost of collection for a trader whose added value is more than £650 or so a year and whose outputs are all liable at the standard rate of VAT.