§ Mr. SpearingTo ask the Secretary of State for the Environment if he will tabulate in theOfficial Report the current and proposed levels of value added tax required or suggested by the Council, or the Commission of the European Economic Community, in respect of the supply and disposal of water and services for each connected thereto, together with estimates made by Her Majesty's Government in respect of both net and gross amounts paid, or received, consequential to the imposition of such taxes.
§ Mr. LilleyI have been asked to reply.
The Council has neither required nor suggested particular levels of VAT on water and sewerage services. Under the Commission's proposals for approximating rates of VAT in the Community, water would be taxed at a rate of between 4 and 9 per cent. Sewerage services would be taxed at a rate of between 14 and 20 per cent., assuming that they are not regarded as synonymous with "water". The theoretical annual revenue yield from supplies other than to industry would be some £25 million to £75 million in respect of water and some £175 million to £250 million in respect of sewerage services. Changes to EC tax law require unanimity. The Government have, of course, made it clear that they consider tax approximation to be unnecessary for the completion of the single market.