HC Deb 26 March 1970 vol 798 cc496-7W
Sir D. Renton

asked the Chancellor of the Exchequer if he will estimate the cost to the Exchequer in a full year of removing from the scope of purchase tax the items that were included as a result of the Finance Act, 1969 and of reducing the rates of other items at present subject to purchase tax, in the case of those subject to the 13¾ per cent, rate, to 10 per cent., and in the case of those subject to the 22 per cent, rate, to 15 per cent.

Mr. Taverne

About £160 million in all.

Mr. Doughty

asked the Chancellor of the Exchequer if he will estimate the cost to the Exchequer in a full year of reducing the 36⅔ per cent, rate of purchase tax to 25 per cent., and the 55 per cent, rate of purchase tax to 25 per cent.

Mr. Taverne:

About £220 million in all.

Mr. Gwynfor Evans

asked the Chancellor of the Exchequer what is his estimate of the effect of taking off the regulation of 10 per cent, which was added to purchase tax in 1968.

Mr. Taverne

Reverting to the purchase tax rates introduced in the 1968 Budget would cost about £100 million a year.