§ Mr. Wintertonasked the Chancellor of the Exchequer what representations have been made to him to exempt doorbells and chimes from the higher rate of VAT since his Budget Statement.
§ Dr. GilbertA letter has been received from the hon. Member.
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§ Mr. Spearingasked the Chancellor of the Exchequer if he will undertake a study that will show the breakdown of the expected yield of £10 million from the increase of VAT rate to 25 per cent. in respect of boats, aircraft, and caravans to each of these categories.
§ Dr. GilbertFurther study on any reasonable scale is unlikely to produce accurate estimates along the lines indicated by my hon. Friend. Probably rather less than half of the expected £10 million p.a. yield from Groups 3 and 4 of the higher rate schedule will accrue from Group 4 (caravans) and most of the rest will accrue from boats, parts and accessories thereto, and associated services.
§ Mr. Spearingasked the Chancellor of the Exchequer if, in any study he undertakes related to the expected yield of the increase of VAT to 25 per cent. in respect of boats, he will estimate the amount likely to accrue from sales of boats classified as dinghies, canoes and racing boats propelled by oars, respectively.
§ Dr. GilbertFurther study on any reasonable scale is unlikely to produce accurate estimates of the yield that can be expected from the various categories listed by my hon. Friend.
§ Mr. Steenasked the Chancellor of the Exchequer what representations he has received on the exclusion of television rental from the 25 per cent. VAT rate since the Budget Statement; and what replies he has sent.
§ Dr. GilbertMy right hon. Friend has received a number of representations that television rentals under existing agreements should be wholly or partly excluded from the 25 per cent. VAT rate. He is considering the arguments put forward.
§ Mr. Wardasked the Chancellor of the Exchequer whether he is aware that his proposal to increase the VAT regulator limit to 25 per cent. on either side of the current rates of 8 per cent. and 25 per cent. when applied to the higher rate will result in rates of either 31.25 per cent. or 18.75 per cent.; and, in view of the resulting inconvenience to small shopkeepers and industry, if he will reconsider his proposals in this matter.
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§ Mr. Joel BarnettAs my right hon. Friend explained in his Budget Statement, the present VAT regulator limit of 20 per cent. would result in highly inconvenient figures if applied to the current standard rate, and that is why he has proposed to change the limit. He is, however, giving further consideration to the matter.