§ Mr. Chris Smith
To ask the Chancellor of the Exchequer what is the impact on inflation of raising £1 billion from(a) tobacco products, (b) beer, (c) wine and spirits, (d) petrol (e) value added tax and (f) vehicle excise duty.
§ Mr. Ryder
[holding answer 12 February 1990]: The estimated impact on the retail prices index of raising £1 billion from each of the specific taxes and duties is shown in the table.
Source Effect on retail price index (per cent.) Tobacco 0.64 Beer 0.48 Wines and spirits 0.91 Petrol 0.29 VAT 0.32 VED 0.24
These estimates are subject to a considerable margin of error given the large duty changes implied.