§ 24. Sir David Rentonasked the Chancellor of the Exchequer whether, in view of submissions that his proposal to charge 25 per cent. VAT on the cost of labour in the repair of televisions, radios and electrical goods will increase the danger of accidents and fires being caused by electricity, he will change that proposal.
§ Dr. GilbertNo. I have noted the submissions but I do not agree with their conclusions.
§ 25. Mr. Torneyasked the Chancellor of the Exchequer whether any changes have taken place on the rate of value added tax on food in EEC countries 153W since the answer given by his hon. Friend the Financial Secretary to the Treasury to a Question on 10th March last.
§ Dr. GilbertI am not aware of any changes since the answer referred to.
§ Mr. Kenneth Clarkeasked the Chancellor of the Exchequer what is the cost of the notices being sent to all registered VAT traders printed on high quality glossy paper; and whether he will use cheaper paper in future.
§ Dr. GilbertThe cost of materials used for VAT Notices 741 and 742 was £31,500. This was Budget material. The final details of production could only be provided at short notice so that there was insufficient time to supply the printer with the appropriate paper and he used what he had available. Future notices will normally be printed on cheaper paper.
§ Mr. Wakehamasked the Chancellor of the Exchequer whether his reference in his Budget Statement that the 25 per cent. VAT would bear more heavily on the better off applied to purchases of small boats; and, if so, if he will publish such evidence as he has on this point.
§ Dr. GilbertMy right hon. Friend is, of course, aware that small boats are purchased by all sections of the community. However, better-off individuals buy more of the less essential goods, including boats, particularly of the more expensive kinds, to which the 25 per cent. rate applies and will, therefore, bear a larger share of the tax burden.
§ Mr. Gwilym Robertsasked the Chancellor of the Exchequer how many representations he has received about the retrospective effect on those renting televisions before 1st May 1975 of the increase in television rentals due to the imposition of a 25 per cent. level of value added tax.
§ Dr. GilbertI regret that an exact figure is not available, but my right hon. Friend has received a large number of representations on this subject. Since the new VAT rate applies only to rental payments on or after 1st May, there is no retrospection.
§ Mr. Welshasked the Chancellor of the Exchequer how much revenue VAT raised in the last fiscal year in Scotland 154W and the United Kingdom; and what is the estimated revenue for this year.
§ Dr. GilbertThe estimates for the United Kingdom, which are given in the Financial Statetment and Budget Report 1975–76, are.
£ million. 1974–75 2,497 1975–76 3,275 No reliable estimates for Scotland can be made until annual VAT data by reference to the country of the main VAT offices in England, Scotland, Wales and Northern Ireland are available. Figures for 1973–74 will be ready later this year.
§ Mr. Welshasked the Chancellor of the Exchequer what is the total annual cost of collection of VAT; how many VAT inspectors are currently in employment; and at what cost.
§ Dr. GilbertI will let the hon. Member have a reply as soon as possible.
§ Mr. Welshasked the Chancellor of the Exchequer how many individual categories of items are subject to zero or to positive rates of VAT.
§ Dr. GilbertGoods and services subject to the zero rate of VAT are listed in Groups 1 to 17 of Schedule 4 to the Finance Act 1972, as amended. All other supplies of goods and services made in the course of a business by a taxable person are liable to a positive rate of VAT unless they fall within the list of exemptions contained in Groups 1 to 8 of Schedule 5 to the Act.