HC Deb 13 December 1999 vol 341 c78W
Dr. George Turner

To ask the Chancellor of the Exchequer what estimate he has made of the annual increase in VAT income generated by each 1p increase in the pump price of fuel following an increase in crude oil prices; and what total increase he estimates will arise from such price increases in the current financial year. [102170]

Mr. Timms

The estimated increase in VAT revenues from road fuels resulting from a 1p per litre increase in pump prices is around £50 million. However the net effect on total VAT revenues of recent increases in pump prices is likely to be small as the additional expenditure on road fuels will have been offset by reduced expenditure on other VATable products.