§ Mr. Foulkesasked the Chancellor of the Exchequer if he will list the percentage level of value added tax take-up for the United Kingdom for each EEC budget since 1975.
§ Mr. Ian Stewart[pursuant to his reply, 16 July 1985, c. 84]: Value added tax was included in the revenue of the budgets of the European Community for the first time in 1979. Prior to that date member states made financial contributions to the Community. From 1975, and until a uniform VAT rate could be applied in 1979 these contributions were calculated on the basis of the gross national product (GNP) share of member states.
The United Kingdom received refunds from the Community to offset its contribution to the budgets for the years 1980 to 1983. To offset our contribution to the 1984 261W budget the United Kingdom's VAT contributions to the 1985 budget are to be abated by 1,000 mecu, leading to an effective VAT rate considerably less than 1 per cent.
The gross VAT rates (ie prior to refund or abatement) at which the United Kingdom contributed for the years 1979 to the latest adopted budget for 1985 are as follows:
VAT percentage rate (prior to refund/abatement) Percentage 1979 0.789 1980 0.732 1981 0.787 1982 0.925 1983 0.-998 1984 1.000 1985 1.000 Notes:
(i) Source: Adopted General Budgets, or final Supplementary and amending budget for the year in question.
(ii) Federal Republic of Germany, Ireland and Luxembourg paid GDP based financial contributions in 1979.
—(iii) With the exception of Greece, which joined in 1981 and until 1984 paid a GNP based contribution all member states have paid VAT contributions from 1980.