§ Mr. Tony Lloydasked the Chancellor of the Exchequer if he will indicate how much tax he expects to raise from the imposition of value added tax on newspaper and magazine advertising; what impact this will have on employment; and how much of the value added tax revenue will come from advertisements placed by charities.
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§ Mr. Hayhoe[pursuant to his reply, 15 April 1985, c. 38]: The extension of VAT at the standard rate to newspaper and magazine advertising is expected to raise £30 million in 1985–86 and £50 million in a full year. Taxation is only one of a number of factors that affects employment and it is not possible to determine the precise effect of this change, though it is not expected to be significant. VAT revenue from advertisements placed by charities is estimated at less than £1 million.