§ Mr. Adam Butlerasked 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. HigginsPurely 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.