HC Deb 27 February 1976 vol 906 cc388-90W
Mr. Skeet

asked the Chancellor of the Exchequer in what countries of the European Community VAT is imposed on natural gas used for domestic consumption; and what are the rates prevailing in each case and the yield.

Mr. Robert Sheldon

Information is not available about the yield of VAT on natural gas used for domestic consumption in those countries of the European Economic Community which charge a positive rate, and could not be obtained without disproportionate cost. The rates of VAT prevailing in each case are as follows:

Belgium 6 per cent
Denmark* 15 per cent
Germany 11 per cent
France 17.6 per cent
Ireland zero
Italy 6 per cent
Luxembourg 5 per cent
Netherlands 4 per cent
United Kingdom zero
* If supplies of gas are made in connection with the letting of a house or premises they are not taxable

The Danish standard rate of VAT—15 per cent.—has been temporarily reduced to 9.25 per cent. until 29th February 1976.

Mr. Skeet

asked the Chancellor of the Exchequer in what countries of the European Community VAT is imposed on electricity used for domestic consumption; and what are the rates prevailing in each cost and the yield.

Mr. Robert Sheldon

Information is not available about the yield of VAT on electricity used for domestic consumption in those countries of the European Economic Community which charge a positive rate, and could not be obtained without disproportionate cost. The rates of VAT prevailing in each case are as follows:

Per cent.
Belgium 14
Denmark* 15
France 17.6
Germany 11
Ireland zero
Italy 6
Luxembourg 5
Netherlands 16
UK zero

TAX THRESHOLD AS PERCENTAGE OF AVERAGE EARNINGS
Year Single person Per cent. Married couple Per cent. Married couple 2 children not over 11 Per cent.
1956–57 31.0 51.9 93.4
1957–58 29.4 49.1 88.4
1958–59 28.9 48.3 86.8
1959–60 27.4 45.7 82.2
1960–61 25.5 42.6 76.6
1961–62 25.6 41.6 73.8
1962–63 24.7 40.2 71.4
1963–64 32.8 50.5 84.5
1964–65 30.4 46.7 78.1
1965–66 27.8 43.0 71.9
1966–67 26.8 41.5 69.4
1967–68 25.5 39.4 66.0
1968–69 23.7 36.6 57.4
1969–70 25.4 37.4 56.1
1970–71 28.6 41.0 57.6
1971–72 26.0 37.2 58.6
1972–73 31.8 41.4 59.9
1973–74 28.0 36.4 52.4
1974–75 24.7 34.2 51.1
1975–76 21.8 30.8 44.6

Average earnings have been taken as the annual equivalents of average weekly earnings of full-time manual males aged 21 and over in manufacturing and certain other industries at October of each year

The tax threshold used takes account where appropriate, of the effect of earned income relief and of the family allowance deduction ("clawback"). For years up to and including 1964–65 account has also been taken of the relief given for national insurance contributions. @

* If supplies of electricity are made in connection with the letting of a house or premises they are not taxable

The Danish standard rate of VAT—15 per cent.—has been temporarily reduced to 9.25 per cent. until 29th February 1976.

Mr. Skeet

asked the Chancellor of the Exchequer whether it is established practice in EEC countries to place VAT on electricity and gas used by commercial and industrial undertakings.

Mr. Robert Sheldon

All EEC countries charge VAT, at either the zero rate or a positive rate, on supplies of electricity and gas to commercial and industrial undertakings. Any VAT charged to such undertakings is, of course, deductible as input tax according to the rules prevailing in each country. In Denmark supplies of electricity and gas made in connection with the letting of a house or premises are not taxable.

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