§ Mr. Sheldonasked the Chancellor of the Exchequer what estimate he has made of the cost to the revenue of reducing the purchase tax rates of 13¾ per cent. to 10 per cent., 22 per cent. to 20 per cent., 36⅔ per cent. to 20 per cent. and 55 per cent. to 40 per cent., respectively.
§ Mr. TaverneThe estimated cost of such a change in rates of purchase tax would be as shown in the table below.
Estimated cost (£m.) 13¾% goods to 10% … 82 22% goods to 20% … 11 36⅔ goods to 20% … 225 55% goods to 40% … 32 Total … 350
§ Mr. Dickensasked the Chancellor of the Exchequer what is the estimated cost to the revenue of abolishing the lowest level of purchase tax; and what the estimated effect on the Index of Retail Prices.
§ Mr. TaverneIf the change were made in isolation the loss of revenue would be about £310 million a year and the effect on the Index of Retail Prices about 0.9 per cent.