HC Deb 15 February 1989 vol 147 cc200-1W
Mr. Roy Hughes

To ask the Chancellor of the Exchequer what was the total revenue from tax on new cars in 1987–88; and what is the estimated revenue for 1988–89.

Mr. Lilley

[holding answer, 14 February 1989]The total revenue from tax (VAT and car tax) on new cars in 1987–88 is estimated to have been £3.4 billion. The VAT element in this figure has been estimated from consumers' expenditure and businesses' purchases of cars, on which tax is not deductible.

Car tax revenue for 1988–89 is estimated at £1.3 billion. An estimate of VAT on new vehicles for 1988–89 is not available.