HC Deb 04 March 1985 vol 74 c421W
Mr. Bright

asked the Chancellor of the Exchequer (1) what would be the effect on revenues from value added tax if all goods and services except exports, currently zero rated, were exempted from value added tax;

(2) what would be the effect on revenues from value added tax if all goods and services currently zero rated were exempted from value added tax.

Mr. Hayhoe

There would be a net increase in revenue from value added tax because the traders affected would no longer be able to reclaim tax paid on their inputs. However, I regret that it is not possible to quantify this net gain.