§ Mr. Scottasked the Chancellor of the Exchequer what would be the total value added tax payable on the import of a £10,000 yearling in the United Kingdom, the Republic of Ireland and France, 167W respectively; and if he will make a statement on the impact of this tax upon the United Kingdom bloodstock industry.
§ Dr. Gilbert£800, nil (exempt), and approximately £20, respectively.
My right hon. Friend met representatives of the Joint Racing Board on 18th March and heard their views about the impact of VAT on the bloodstock industry. As he stated in his Budget speech, he has considered most carefully and with much sympathy these and other arguments for reliefs from VAT, but has been forced to conclude that he cannot propose any further reliefs at this time.
§ Mr. Monroasked the Chancellor of the Exchequer (1) what additional income he expects through the increase in VAT on, respectively, the sale of boats, gliders and aircraft;
(2) what additional income he expects through the increase in VAT on, respectively, the maintenance, repair and servicing of boats, gliders and aircraft.
§ Dr. GilbertI would refer the hon. Member to my answer to my hon. Friend the Member for Newham, South (Mr. Spearing (on 28th April.—[Vol. 891, c.65]
§ Mr. Monroasked the Chancellor of the Exchequer what consideration he gave before proposing the increase in VAT charges on boats to its effects on seaworthiness and safety; and if he will make a statement.
§ Dr. GilbertThese points were considered very carefully. The higher rate of VAT will not apply to liferafts which comply with the requirements of the Merchant Shipping (Life Saving Appliances) Rules 1965; nor to safety equipment such as flares, lifebuoys, lifejackets, safety harnesses and fire extinguishers; nor to sailing and navigation tuition. Lifeboats supplied to the Royal National Lifeboat Institution will continue to be zero rated.
§ Mr. Hicksasked the Chancellor of the Exchequer how the figure for his estimate of the increased revenue he will derive for the remainder of the financial year 1975–76 as a consequence of the introduction of the 25 per cent. VAT on certain products compares with the estimated revenue from a general flat-rate increase 168W on all goods and services from 8 per cent. to 10 per cent. VAT.
§ Dr. GilbertIt is estimated that the yield in 1975–76 of raising the standard rate of VAT from 8 per cent. of 10 per cent. on 1st May 1975 would be about £400 million. The estimate for higher rate VAT in 1975–76 is £200 million.
§ Mr. Denzil Daviesasked the Chancellor of the Exchequer whether he will provide for different regulator limits to be applied to the different rates of VAT so as to keep their percentages as simple as possible in all circumstances.
§ Mr. Joel BarnettIt has been generally considered that the power to change indirect taxation by statutory instrument in an emergency should be exercised by means of a uniform, non-discriminatory percentage. However, my right hon. Friend accepts that for VAT there are additional considerations to be taken into account also, and he will study the possibility raised by my hon. Friend.