§ Mr. Cordleasked the Chancellor of the Exchequer what increase would have to be made in the £5,000 exemption limit for value added tax in order to restore the limit to the same real value as when that tax was first introduced; and what would be the estimated annual cost to the Exchequer if the limit was so raised.
§ Mr. Robert SheldonThe exemption limit would need to be raised to £8,000 a year, and the cost to the Exchequer would be about £25 million in a full year.
§ Mr. Cordleasked the Chancellor of the Exchequer whether he will introduce appropriate legislation to enable all individuals and businesses registered for value added tax purposes to deduct a sum equal to 1 per cent. of the total output tax due for remittance from time to time to the Commissioner for Customs and Excise up to the maximum of £100 in each case so as to remunerate them, in part at least, for their services as collectors; and what would be the estimated annual cost to the Exchequer if such legislation were to be enacted.
§ Mr. Robert SheldonNo. It is not possible to give a precise estimate of the annual cost, but it could be some £50 million a year.