HC Deb 09 May 1972 vol 836 cc326-8W
84. Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on food as defined in Group 1 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on the foods which are in fact to be zero rated is estimated at about £675 million in a full year.

85. Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on books and other items set out in Group 3 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on the items in Schedule 4 Group 3, which are in fact to be zero-rated, is estimated at about £60 million in a full year.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer to what extent he estimates that the revenue product on wines and spirits would be increased if value added tax was imposed at a rate of 17 per cent., 11 per cent., 14 per cent. and 10 per cent. respectively, on both wines and spirits, and at rates of 6 per cent. on wines and 25 per cent. on spirits, the rates now in force in France, Germany, Holland. Luxembourg and Belgium.

Mr. Higgins

This would depend on the extent to which the revenue duties on wines and spirits were altered when the value added tax was imposed, as envisaged in paragraph 27(b) of the White Paper on the Value Added Tax.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on water as defined in Group 2 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on water which is in fact to be zero-rated is estimated at about £10 million in a full year.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on newspaper advertising as defined in Group 4 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on newspaper advertising which is in fact to be zero-rated is estimated at about £3 million in a full year.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on news services as defined in Group 5 of Schedule 4 to the Finance Bill.

Mr. Higgins

No precise estimate is possible. The figure is likely to be small.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on fuel and power as defined in Group 6 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on fuel and power is defined in Schedule 4, Group 6 which are in fact to be zero-rated would depend on whether any adjustment was made to revenue duties.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on the construction of buildings as defined in Group 7 of Schedule 4 to the Finance Bill.

Mr. Higgins

An estimate of the hypothetical yield of VAT at 10 per cent. on this group as a whole which is in fact to be zero-rated, cannot be made.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on transport as defined in Group 9 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on transport as defined in Schedule 4 Group 9 which is in fact to be zero-rated is estimated at about £85 million in a full year.

Mr. Joel Barnett

asked the Chancellor of the Exchequer what is his estimate of the yield of a 10 per cent. value added tax on caravans as defined in Group 10 of Schedule 4 to the Finance Bill.

Mr. Higgins

The hypothetical yield of VAT at 10 per cent. on residential caravans as defined in Schedule 4 Group 10 which are in fact to be zero-rated is estimated at less than £1 million in a full year.