HC Deb 28 June 1988 vol 136 cc181-2W
Mr. Nicholas Bennett

To ask the Secretary of State for Employment what consideration has been given to the insurance industry of the value added tax extensions proposed by the European Economic Community Commission in its case before the European Court under the sixth directive; and if he will make a statement.

Mr. Lilley

[holding answer 21 June 1988]: I refer my hon. Friend to my statement on the European Court's judgment on 21 June at columns 957–58. The measures which I announced to mitigate the effects of the judgment mean that the increase in the VAT borne by the insurance sector should be in the region of £75 million in a full year at 1988–89 prices. Without this mitigation the increase would have been about £200 million.