§ Mr. DafisTo ask the Chancellor of the Exchequer what estimate he has made of the revenue in a full year from the imposition of VAT at the standard rate on aircraft fuel. [35324]
§ Mr. Heathcoat-AmoryThe estimate of the revenue in 1995 from the imposition of VAT at the standard rate on aircraft fuel for internal flights is £10 million. Fuel used for overseas flights is zero-rated. Assuming that the imposition of VAT at the standard rate on such fuel would have had no effect on demand, it is estimated that £160 million would have been raised in 1995.