§ Mrs. EwingTo ask the Chancellor of the Exchequer what estimates he has for the anticipated revenue from(a) insurance premium tax and (b) higher rate insurance premium tax for the year 1997–98. [22620]
§ Dawn PrimaroloThe latest estimate for receipts of insurance premium tax in 1997–98 is £1.1 billion. No separate estimate is available for receipts at the higher rate.
§ Mrs. EwingTo ask the Chancellor of the Exchequer what representations he has received regarding the number of jobs lost in the(a) travel agency sector and (b) retail sector since the introduction of higher rate insurance premium tax. [22622]
§ Dawn PrimaroloI have received a number of representations from the travel agency and retail sector about this tax measure, some of which express concerns about the possibility of consequential job losses. I have not received any representations about actual job loss which can be attributed to this measure.
§ Mrs. EwingTo ask the Chancellor of the Exchequer what assessment he has made of the(a) benefits and (b) disadvantages of reintroducing a single rate of insurance premium tax to remedy distortions in the insurance market. [22624]
§ Dawn PrimaroloThe higher rate of insurance premium tax, set at the same rate as the standard rate of VAT, has prevented the tax loss (and distortion of trade) previously suffered where suppliers of taxable goods and services switched margins into ancillary sales of VAT exempt insurance. To return to a single, low rate of insurance premium tax would re-open this tax loophole and there are therefore no plans to go down this path. However, the impact of this tax measure is being kept under review.