HC Deb 18 March 1998 vol 308 cc645-6W
Mr. Corbett

To ask the Chancellor of the Exchequer what percentage of the total amount raised from value added tax is paid directly to the European Commission; how much this raises at the current rate; and what the yield to the Commission was in each financial year since the introduction of VAT. [34695]

Dawn Primarolo

[holding answer 16 March 1998]: VAT contributions to the European Community are assessed from VAT bases calculated in a common manner across all member states. A uniform Community rate is applied to the VAT bases to arrive at the actual contributions. The Community rate for 1997 was a maximum of 1.16 per cent., but the actual rate paid by the UK was 0.52 per cent.allowing for the abatement to offset the low level of UK receipts from the European Union's General Budget.

Member states did not commence paying VAT based contributions until 1979. Since then, the UK has paid the following amounts during each calendar year:

Year £
1979 843,683,425
1980 776,155,832
1981 1,060,209,936
1982 1,554,368,023
1983 1,668,927,244
1984 1,665,401,210
1985 2,089,417,074
1986 1,743,046,245
1987 2,277,429,915
1988 1,265,213,455
1989 2,243,863,837
1990 2,919,974,035
1991 770,987,557
1992 2,183,357,515
1993 1,953,652,009
1994 1,316,266,329
1995 3,637,792,072
1996 2,059,438,539
19971 1,664,864,875
1The 1997 accounts are finalised in December 1998, so the contribution may be adjusted.

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