§ Mr. Rathboneasked the Chancellor of the Exchequer what was the rate of VAT or purchase tax and the revenue yield from such taxes on sales of flags and pennants for each of the last five years for which statistics are available.
§ Mr. Robert SheldonFlags and pennants were in general not chargeable with purchase tax. They became taxable at the standard rate of value added tax of 10 per cent. on 1st April 1973. The rate was reduced to 8 per cent. on 29th July 1974. Persons registered for VAT are not required to make returns of the tax charged on supplies of particular goods and services. The revenue raised from this source over the last five years was probably very small.
§ Mr. Rathboneasked the Chancellor of the Exchequer what was the rate of VAT 192W or purchase tax and the revenue yield from such taxes on sales of flagpoles, yardarms and masts for each of the last five years for which statistics are available.
§ Mr. Robert SheldonFlagpoles, yardarms and masts were not subject to purchase tax. On the introduction of VAT on 1st April 1973 these items became chargeable at the standard rate which was reduced from 10 per cent. to 8 per cent. on 29th July 1974. Masts and yardarms of a kind suitable for use in small boats and those used in ships or boats for recreation or pleasure became chargeable with the higher rate of VAT of 25 per cent. on 1st May 1975. This was reduced to 12½ per cent. on 12th April 1976.
Persons registered for VAT are not required to make returns of the tax charged on supplies of particular goods and services; the revenue raised each year is likely to be small.