§ Mr. Adam Butlerasked the Chancellor of the Exchequer what was the total amount of purchase tax levied and collected on food items affected in the last available financial year; and what is the estimated annual revenue on the same items from value added tax at a 10 per cent. rate.
§ Mr. HigginsOne hundred and fifty-two million pounds in 1971–72, when the rates of purchase tax on foodstuffs were at first 22 per cent. and subsequently, from 19th July, 1971, 18 per cent. A 10 per cent. value added tax would have produced approximately £105 million, which is only some 70 per cent. of this.