HC Deb 04 February 1993 vol 218 c297W
22. Mr. Patrick Thompson

To ask the Chancellor of the Exchequer what representations he has received about the decision to abolish car tax.

Sir John Cope

The abolition of car tax has been warmly welcomed by both the motor trade and the vast majority of retail customers, and the motor industry has received a valuable stimulus.

Mr. Jim Cunningham

To ask the Chancellor of the Exchequer what assessment he has made of the effect of the abolition of car tax on Exchequer revenue.

Mr. Dorrell

The abolition of car tax, announced in the 1992 autumn statement, has an estimated revenue cost of £100 million in 1992–93 and £750 million in 1993–94, including the loss of consequential VAT receipts. However, the Chancellor announced his intention at that time to recoup the cost of abolishing car tax in 1993–94 through other taxes on motoring. This information is set out in the 1992 autumn statement.