§ Mr. Trotterasked the Chancellor of the Exchequer what is his estimate of the additional annual cost of administering VAT as a result of the introduction of a 25 per cent. rate; how many additional staff were engaged; and what is his 76W current estimate of the additional revenue arising from the higher rate.
§ Mr. Robert SheldonNeither additional staff numbers nor additional annual cost arising from the extension of the 25 per cent. rate of VAT last May can be accurately isolated from those relating to the administration of VAT as a whole. The additional revenue from the higher rate (including that arising from its application to petrol etc.) is estimated at about £500 million in a full year.