§ Mr. Ridleyasked the Chancellor of the Exchequer what was his original estimate of the extra yield of the 25 per cent. VAT imposed on each of the following items, respectively, (1) caravans, (2) boats, (3) electrical goods and (4) furs; and what is his estimate of the revised yield, in the light of experience so far for 1974–75.
§ Mr. Robert SheldonFor the Budget estimates I would refer the hon. Member to the replies given to the hon. Member for Gosport (Mr. Viggers) on 25th April and to my hon. Friend the Member for Newham, South (Mr. Spearing) on 28th April. It has been estimated that the restoration of the standard rate of VAT to television rental agreements entered into before 16th April 1975 would reduce the revenue from Group 2 of the higher rate schedule by £60 million in 1975–76 and by £90 million in a full year. We have undertaken to monitor the effects of the 25 per cent. rate and have made arrangements accordingly, but it is not the prac-486W tice to publish revised estimates of revenue receipts between Budgets.
§ Mr. David Steelasked the Chancellor of the Exchequer if he will exempt "gokarts" made for invalid children from value added tax.
§ Mr. Robert SheldonItem 2 of Group 14 of Schedule 4 to the Finance Act 1972 zero-rates for VAT a wide range of domestic medical and surgical appliances which are designed solely for the relief of a severe abnormality or severe injury, but the relief does not extent to recreational equipment. I am looking into the position of the items mentioned by the hon. Member and will write to him in due course.