HC Deb 13 December 1976 vol 922 cc546-7W
Mr. Farr

asked the Chancellor of the Exchequer what was the total sum collected in VAT in the latest available complete year.

Mr. Robert Sheldon

VAT revenue collected in 1975–76 was £3,454.9 million.

Mr. Paul Dean

asked the Chancellor of the Exchequer what revenue would be lost if the VAT threshold were raised to £50,000; and how many registered traders would then be below the threshold.

Mr. Robert Sheldon

An increase in the VAT registration exemption limit of this magnitude would cause such a change in the nature of the tax that it is not possible to make reasonable forecasts. In theory about 1 million traders—ie, about 80 per cent. of the total—would cease to be under a legal obligation to be registered, but it is not known how many of these would choose to remain registered voluntarily. For this reason, the loss of revenue cannot be predicted.

Mr. Wiggin

asked the Chancellor of the Exchequer how many letters he has received in the last month, directly or indirectly, from boat builders and those in the marine trades, requesting a uniform level of VAT not in excess of 12½ per cent.

Mr. Robert Sheldon

About 40.