Purchase Tax (Surcharge)

HC Deb 25 July 1966 vol 732 c199W

Mr. John Smith

asked the Prime Minister (1) how much purchasing power he estimates will be removed from the economy in the next three months by the 10 per cent. surcharge on beer, wines and spirits;

(2) how much purchasing power he estimates will be removed from the economy in the next three months by the 10 per cent. surcharge on hyrocarbon oils, petrol substitutes and power methylated spirit;

(3) how much purchasing power he estimates will be removed from the economy in the next three months by the 10 per cent surcharge on Purchase Tax.

Mr. MacDermot

I have been asked to reply.

The additional revenue becoming due to the Exchequer from the surcharge during the next three months will be about £40 million, made up as follows:—

	£ million
hydrocarbon oil, etc.	19
beer, wines and spirits	10½
purchase tax	10½

Because the revenue is in some cases payable in arrear, the amount collected in the period will be about £25 million.

Mr. Corfield

asked the Prime Minister what is the estimated yield in the current financial year of the recent increase in Purchase Tax.

Mr. MacDermot

I have been asked to reply. £18 million.