§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what was the total yield from VAT in 1978–79; and what is the total estimated yield for 1994–95.
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§ Sir John CopePublished figures show £4.8 billion and £43.1 billion respectively.
§ Mr. SheermanTo ask the Chancellor of the Exchequer (1) what steps he is taking to ensure that mainland European flower growers who sell direct to British florist outlets pay the appropriate levels of value added tax;
(2) what steps he is taking to ensure that British flower growers do not face unfair competition from growers on the mainland of Europe who sell in British outlets and evade payment of value added tax.
§ Sir John CopeSupplies of flowers made by businesses from another member state are subject to VAT under the usual conditions, either in this country or in the country of origin if the total is below the threshold, depending on the circumstances, and the normal controls apply.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer if he will estimate what the nation's tax burden as a percentage of gross domestic product will be in 1998–99; and what this figure was in 1978–79.
§ Mr. DorrellI refer the hon. Member to the answer I gave him on 23 February,Official Report, Column. 274.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer how much he estimates will be raised by the Treasury in(a) 1994–95, (b) 1995–96 and —(c) 1996–97 from the freezing of personal income tax allowances.
§ Mr. DorrellThe information was given in table 4.1 of the "Financial Statement and Budget Report 1994–95" published on 30 November 1993.
§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer how many people will be affected by his decision, announced in the last Budget, to reduce the married couple's income tax allowance to 15 per cent. in 1994–95.
§ Mr. DorrellI refer the hon. Member to the reply given to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 14 December 1993,Official Report, columns 579–80.
§ Ms HarmanTo ask the Chancellor of the Exchequer (1) what would be the reduction in tax payable resulting from full indexation of the additional personal allowance applied at the standard or higher rate for(a) a lower-rate taxpayer, (b) a basic-rate taxpayer and (c) a higher-rate taxpayer in (i) 1994–95 and (ii) 1995–96; and what would be the gross revenue cost of these measures;
(2) what would be the reduction in tax payable resulting from full indexation of the widow's bereavement allowance applied at the standard or higher rate of relief for (a) a lower-rate taxpayer, (b) a basic-rate taxpayer and (c) a higher-rate taxpayer in (i) 1994–95 and (ii) 19954–96; and what would be the gross revenue cost of these measures.
§ Mr. Dorrell[holding answer 24 March 1994]: The table shows the typical gain for each type of taxpayer if the 1993–94 levels of the allowances had been indexed and they remained available at the taxpayer's marginal rate.
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Difference in tax between 1993–94 indexed regime and proposed regimes in 1994–95 and 1995–96 £ per year Additional personal allowance Widow's bereavement allowance 1994–95 Lower rate taxpayer +8 +8 Basic rate taxpayer +96 +96 Higher rate taxpayer +360 +360 1995–96 Lower rate taxpayer +106 +106 Basic rate taxpayer +197 +197 Higher rate taxpayer +470 +470
Revenue cost in a full year of 1993–94 indexed regime compared with proposed regimes £ million 1994–95 1995–96 Additional personal allowance 60 130 Widow's bereavement allowance 10 20
§ Ms HarmanTo ask the Chancellor of the Exchequer (1) what would be the reduction in tax payable resulting from full indexation of relief on the married couple's allowance at the standard or higher rate for those aged over 65 years to pensioner couples paying tax at(a) the lower rate, (b) the basic rate and (c) the higher rate if they are (i) 65 to 74 years and (ii) 75 years and over; and what would be the gross revenue cost of these measures;
(2) what would be the reduction in tax payable resulting from full indexation of relief on the married couple's allowance at standard and higher rate for taxpayers aged over 65 years at (a) the basic rate and (b) the higher rate if they are (i) 65 to 74 years and (ii) 75 years and over; and what would be the gross revenue costs of these changes.
§ Mr. Dorrell[holding answer 24 March 1994]: The table shows the typical gain or loss for taxpayers in each age group if the 1993–94 levels of the allowances had been indexed and they remained available at the taxpayer's marginal rate. The gain or loss depends on the marginal tax rate of the spouse receiving the allowance, so the effect for a couple will be the same regardless of the tax liability of the spouse without the allowance.
Difference in tax between 1993–94 indexed regime and proposed regime for 1994–95 Lower rate taxpayer £ per year Basic rate taxpayer £ per year Higher rate taxpayer £ per year Married couple's allowance for those aged 65 to 74 -30 +96 +473 Married couple's allowance for those aged 75 or over -30 +98 +481 The Exchequer effect would be broadly revenue neutral for the full year 1994–95.