HC Deb 29 July 1976 vol 916 cc392-3W
Mr. Cockcroft

asked the Chancellor of the Exchequer what are the latest available figures for turnover in each of the main categories of goods and services currently exempted or zero rated for VAT; and if he will estimate the tax yield in each case if VAT were payable at the standard rate.

Mr. Robert Sheldon

The turnover information asked for is not available but it is estimated that about 10 per cent. of consumers' expenditure is on goods and services exempt from VAT and 30 per cent. zero-rated. It is further estimated that the yield in a full year from taxing at the standard rate the main categories of zero-rated supplies would be approximately:

Category Yield (£ million)
Food 900
Fuel 250
Transport 150
Books, newspapers and magazines 100
Children's clothing and footwear 50

There are technical difficulties in taxing the supplies at present exempt and it is not possible to estimate the potential yield.