§ Mr. Doverasked the Chancellor of the Exchequer what was his original estimate of the revenue in 1984–85 and 1985–86 from the imposition of value added tax on takeaway foods; and what was the actual revenue gathered from this source in each year.
§ Mr. BrookeWhen the imposition of value added tax on hot take away food was announced in the 1984 Budget, it was estimated that the net revenue yield would be £125 million in 1984–85 and £200 million in a full year. No estimate was made for 1985–86.
Value added tax paid in respect of hot take away food and drink is not separately identified in Customs and Excise accounts, nor is it possible to produce a reliable estimate from consumers' expenditure data, since the latest survey information relates only to 1984, when expenditure patterns were distorted by the immediate effects of imposing value added tax.
§ Mr. Doverasked the Chancellor of the Exchequer what is his estimate of the implications for employment in the takeaway food industry of the imposition of value added tax in the Budget of 1984.
§ Mr. BrookeNo reliable information is available on employment in the hot take away food industry. In any case, it would not be possible to isolate and evaluate separately the effects of imposing value added tax on hot take away food and drink from those of other changes, such as trends in consumers' tastes, fluctuations in the price of raw materials, and the consequences of competition in the industry.
§ Mr. David Atkinsonasked the Chancellor of the Exchequer what progress he has made with his negotiations with the Community on raising value added tax thresholds.
§ Mr. BrookeAs indicated in the reply to my hon. Friend on 17 April 1986 at column 483, negotiations have been continuing with the Commission with a view to allowing member states greater flexibility in determining their threshold. We are now awaiting the Commission's formal proposals.