§ Mr. WigleyTo ask the Chancellor of the Exchequer what plans he has to simplify the VAT regime.
§ Sir John CopeThe Government keep the VAT system under regular review, in consultation with the relevant trade and professional bodies. Improvements proposed in the last Budget include the reform of VAT penalties and default surcharge, halving the qualifying period for claiming had debt relief, and increasing the turnover threshold for using the cash accounting scheme to £350,000.
In addition, Customs and Excise have embarked on a deregulation five-year rolling review or VAT law and administrative procedures with the aim of making VAT more user-friendly. Trade and professional bodies have been invited to identify areas in which there is scope for simplification.
§ Mr. Denzil DaviesTo ask the Chancellor of the Exchequer what is is estimate of the total official revenue that will accrue to the Exchequer in a full year by imposing VAT at the rate of 5 per cent. on the goods and services described in categories 1, 6, and 8 of annex A of directive 92/77/EEC.
§ Sir John Cope[holding answer 28 June 1993]: Estimates of VAT revenue that would occur in a full year from a 5 per cent. rate are as follows:
£ million Food 2,000 Books, newspapers and magazines 300 Artist royalties —50 These estimates are for 1992–93 and make no allowance for behavioural change.