§ Sir Michael NeubertTo ask the Chancellor of the Exchequer when he next expects to meet his Finance Minister counterparts in Europe to discuss developments in the VAT regime.
§ Sir John CopeMy right hon. and learned Friend the Chancellor of the Exchequer expects to meet EC Finance Ministers at the forthcoming meetings of the ECOFIN Council which are scheduled for 16 May and 6 June. The agenda will not be finalised until close to the meetings, but the Greek presidency's provisional agenda for 6 June provides for discussion on the draft EC directive on the VAT treatment of passenger transport and the draft EC VAT simplification directive.
§ 27. Mr. CanavanTo ask the Chancellor of the Exchequer what recent discussions he has had with the fuel and power companies about VAT; and if he will make a statement.
§ Sir John CopeNone. However Customs officials have had a number of meetings with representatives of the gas and electricity supply industries and with other fuel suppliers. A wide range of issues about the implementation of VAT on fuel and power have been discussed.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer (1) how much he estimates the imposition of VAT on domestic fuel will cost the average family from(a) the beginning of April 1994 and (b) April 1995;
(2) what estimate he has made of the increase to the average family's weekly fuel bill of an 8 per cent. tax imposition on domestic fuel;
(3) if he will estimate the cost in a full year to an average household's energy bills of the introduciton of VAT at (a) 8 per cent. and (b) 17½ per cent.
§ Sir John CopeThe cost of VAT on domestic fuel bills will depend on the future level of fuel prices and on what happens to spending patterns. But VAT at 8 per cent. applied to an estimate of fuel bills in 1993–94, would cost households on average around £1.05 per week, and VAT at 17½ per cent. around £2.30 a week.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer how many representations he has now received concerning the imposition of VAT on domestic fuel and power.
§ Sir John CopeTreasury Ministers have received a number of representations.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer (1) if he will estimate the number of people who took advantage of avoiding paying VAT on fuel after 1 April by paying their bills in advance;
(2) if he will estimate the number of pensioners and people on low incomes who took advantage of avoiding paying VAT on fuel after 1 April by paying their bills in advance.
§ Sir John CopeIt is estimated that about 5 per cent. of domestic electricity consumers and about 4 per cent. of domestic gas consumers paid fuel bills in advance of the imposition of VAT on 1 April. It is not possible to make separate estimates for different types of household.
278W
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what percentage of an average household's income he forecasts will be spent on VAT in(a) 1994–95 and (b) 1995–96.
§ Sir John CopeThe latest published information shows that VAT paid by households averaged around 6.8 per cent. of household gross income in 1992.