§ Mr. BayleyTo ask the Chancellor of the Exchequer how much revenue the Treasury(a) received up to the end of the 1995–96 tax year and (b) has estimated it will receive in 1996–97 from (i) duty on sales of national lottery tickets and (ii) other taxes paid in respect of lottery activities; and if he will make a statement about the use to which these additional tax revenues have been applied. [25868]
§ Mr. Heathcoat-AmoryIn the financial year 1995–96, the total amount of lottery duty received by HM Customs and Excise was £612 million. The projection of lottery ticket sales in the Budget forecast implies receipts of lottery duty of £660 million in 1996–97.
629WFigures for other tax receipts in respect of lottery activities are not available. Total tax receipts do not include the net inflows to the national lottery distribution fund, which are scored as non-tax receipts in the Government accounts.
Lottery spending will displace other consumer spending, which would have been taxable. The rate of lottery duty was set so as to be broadly neutral with respect to tax receipts.