HC Deb 25 April 1975 vol 890 cc403-5W
Mr. Viggers

asked the Chancellor of the Exchequer how much extra VAT he expects to raise in the current year by increasing the rate on television rentals from 8 per cent. to 25 per cent.

Dr. Gilbert

It is estimated that raising the rate of VAT to 25 per cent. on radio and television sets, etc., will yield about £115 million in 1975–76. An estimate for the effect as regards the renting of television sets has not been made.

Mr. Viggers

asked the Chancellor of the Exchequer what are the constituent items making up the increased anticipated receipts from VAT for the period 1975–76, shown on page 30 of the Financial Statement and Budget Report 1975–76 as amounting to £200 million.

Dr. Gilbert

The information is:

ESTIMATED INCREASE IN TAXATION OF THE HIGHER RATE OF VAT
Group No. Estimate for 1975–76 (£ million)
1. Domestic electric appliances, etc. 60
2. Radio and television sets, etc. 115
3. Boats and aircraft 5
4. Caravans 5
5. Photographic equipment, binoculars, etc. 5
6. Furs 3
7. Jewellery, goldsmiths' and silversmiths' wares, etc. 12
Total 200

Mr. Viggers

asked the Chancellor of the Exchequer what are the constituent items making up the increased anticipated receipts from VAT for a full year, shown on page 30 of the Financial Statement and Budget Report 1975–76 as amounting to £325 million.

Dr. Gilbert

The information is:

ESTIMATED INCREASE IN TAXATION OF THE HIGHER RATE OF VAT
Group No. Estimate for a full year (£ million)
1. Domestic electric appliances, etc. 100
2. Radio and television sets, etc. 180
3. Boats and aircraft 10
4. Caravans 10
5. Photographic equipment, binoculars, etc. 10
6. Furs 5
7. Jewellery, goldsmiths' and silversmiths' wares, etc. 20
Total 325

Mr. Viggers

asked the Chancellor of the Exchequer what are the constituent items making up the increased anticipated receipts from VAT for the period 1975–76, shown on page 18 of the Financial Statement and Budget Report 1975–76, as rising from £3,054 million to £3,275 million.

Dr. Gilbert

The constituent items are shown on page 30 of the Financial Statement and Budget Report 1975–76.

Mr. Viggers

asked the Chancellor of the Exchequer (1) how much VAT was raised in the last year on television rentals;

(2) how much VAT was raised in the last year on television rentals of colour sets.

(3) how much VAT was raised in the last year on television rentals of black and white sets:

Dr. Gilbert

I regret that the information is not available.

Mr. Mudd

asked the Chancellor of the Exchequer if he will confirm that service and repair charges to radio, television and other electrical appliances will be at the VAT rate of 25 per cent.

Dr. Gilbert

The 25 per cent. rate of VAT applies to charges for the service and repair of radio and television sets and of those domestic electrical appliances which are themselves chargeable at the 25 per cent. rate.

Mr. Viggers

asked the Chancellor of the Exchequer how much extra VAT he expects to raise in a full year by increasing the rate on television rentals from 8 per cent. to 25 per cent.

Dr. Gilbert

It is estimated that raising the rate of VAT to 25 per cent. on radio and television sets, etc., will yield about £180 million in a full year. An estimate for the effect as regards the renting of television sets has not been made.