VAT (Hansard, 10 December 1991)

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what would be the estimated yield in 1991–92 of the imposition of VAT at(a) 5 per cent., (b) 17.5 per cent. and (c) 22 per cent. on (i) books, (ii) newspapers, (iii) 371W magazines, (iv) rent, (v) house purchase (new buildings), (vi) house purchase (second-hand buildings) and (vii) fares on passenger transport.

§ Mrs. Gillian Shephard
[holding answer 9 December 1991]: Information on the estimated revenue from standard rating zero rated goods in 1990–91 was published in the "Financial Statement and Budget Report", annex B table 4B.1. Similar data for 1991–92 will be published in the 1992 FSBR when expenditure estimates for 1991–92 will be firmer. The following estimated yield is for 1990–91:

£ billion Estimated yield from the imposition of VAT at:

(a) 5 per cent. (b) 17.5 per cent. (c) 22 per cent.

Books 0.1 0.3 0.3

Newspapers 0.1 0.4 0.5

Magazines 0.1 0.2 0.2

Rent¹ 0.5 1.9 2.4

House purchase² 0.5 1.8 2.2

Passenger transport 0.3 1.1 1.4

¹ Domestic rent is exempt rather than zero rated.

² Figures for expenditure on second hand houses are not available.

These figures have been rounded to the nearest £100 million. The items have been costed separately and cannot be added together to give a meaningful total.
The figures make no allowance for changes in behaviour and are likely to overstate the actual yield.

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what was the total yield from VAT in 1978–79; and what is the expected total yield in 1991–92, in cash and in 1991–92 prices.

§ Mrs. Gillian Shephard
[holding answer 9 December 1991]: The relevant information is provided in the table.

£ billion

Cash 1991–92 prices

1978–79 outturn 4.8 12.9

1991–92 estimate 36.2 36.2

§ Mr. Nicholas Brown
To ask the Chancellor of the Exchequer what, in the latest year for which information is available, is(a) the total number of people, (b) the number of people over state retirement age and (c) the number of one-parent families who pay (i) income tax and (ii) VAT.

§ Mr. Maude
[holding answer 9 December 1991]: It is estimated that, in 1991–92, 25.1 million individuals will be liable to income tax. Of these an estimated 2.5 million are aged 65 or over and 0.5 million are single parents.
VAT is chargeable on a wide range of consumer expenditure and it is likely that everybody has to pay some in the course of a year.

£ billion Estimated yield from the imposition of VAT at:
	(a) 5 per cent.	(b) 17.5 per cent.	(c) 22 per cent.
Books	0.1	0.3	0.3
Newspapers	0.1	0.4	0.5
Magazines	0.1	0.2	0.2
Rent¹	0.5	1.9	2.4
House purchase²	0.5	1.8	2.2
Passenger transport	0.3	1.1	1.4
¹ Domestic rent is exempt rather than zero rated.
² Figures for expenditure on second hand houses are not available.

£ billion
	Cash	1991–92 prices
1978–79 outturn	4.8	12.9
1991–92 estimate	36.2	36.2