HC Deb 12 July 1972 vol 840 c386W
Mr. Adam Butler

asked the Chancellor of the Exchequer what is the anticipated income from purchase tax on each category of goods of which a different rate of that tax is levied for the current financial year; and what would be the estimated receipts for the same volume of goods in each category if value added tax at 10 per cent. were substituted.

Mr. Higgins

Purely arithmetical calculations making no allowance for changes in the pattern of consumption, and restricted to final sales of goods now subject to purchase tax, are as follows:

Rate of purchase tax (per cent.) Computed full year yield of purchase tax on 1972–73 expenditure Computed full year yield of VAT on 1972–73 expenditure
£m. £m.
11¼ 370 430
18 150 110
25 755 470*
* Including car tax.