§ Mr. Cordleasked the Secretary of State for Prices and Consumer Protection by what amount the food industry's costs could be reduced if it received a rebate in respect of all motor fuel taxes presently levied on it; and, on the basis of the full saving being passed on to the consumer, what effect this would have on the Retail Prices Index.
§ Mr. BoothI have been asked to reply.
Separate information on the payments of taxes by the food industry in respect of motor fuel is not available. The effect on the RPI of a rebate of such taxes cannot, therefore, be estimated. I would refer the hon. Gentleman to the reply given him on Friday 19th July 1974— [Vol. 877, c. 278–9.]—relating to the total excise payments on hydrocarbon oils including motor fuel. The estimate is not affected by the increase, on 18th November, in the rate of VAT on petrol since food manufacturers and distributors will generally be able to reclaim the full amount of their VAT payments.