§ Mr. Fallonasked the Chancellor of the Exchequer how many new companies were registered for value added tax in the northern region in each year since 1979; and what was the net change in each year.
§ Mr. BrookeThe number of new registrations for value added tax, together with the net change, for the area covered by the value added tax offices at Middlesborough, Newcastle-upon-Tyne, and Washington in each of the calendar years since 1979 is as follows:
Number Change 1979 5,607 +1,680 1980 5,568 +533 1981 4,769 +1,278 1982 5,260 +472 1983 5,800 +953 1984 5,821 +620 1985 6,046 -198
§ Mr. Tim Smithasked the Chancellor of the Exchequer if he will estimate the effect of the elimination of value added tax payments on credit transactions between registered traders on the tax yield on the assumption that Customs and Excise continues to take appropriate measures to collect all revenue due; and if he will make a statement.
§ Mr. BrookeAs I told the hon. Member for Yeovil (Mr. Ashdown) on 20 November 1985 at column 190 any loss could be prevented. However, steps would have to be taken to ensure that tax currently charged on taxable supplies to businesses which is irrecoverable by them was not lost to the Exchequer. These steps, including the need to separate credit and cash transactions, would involve extra complexity both in the operation of the tax and for the trader.