HC Deb 17 February 1977 vol 926 cc299-300W
66. Mr. Holland

asked the Chancellor of the Exchequer on which individual sales taxes and excise duties VAT is levied; and what is the total revenue obtained from the imposition of this pick-a-back tax on other forms of taxation.

Mr. Robert Sheldon

Where the following duties and taxes apply, they are normally reflected in the price on which VAT is charged:

Car tax; excise duties on spirits, beer, wine, made-wine, cider and perry, tobacco, some hydrocarbon oils, matches and mechanical lighters. The yield of VAT on these duties and taxes is estimated at about £450 million in a full year.

Mr. Holland

asked the Chancellor of the Exchequer on what grounds VAT is levied on the amount of car sales tax imposed on a purchaser; and if he will make a statement about the principles involved.

Mr. Robert Sheldon

Under the Finance Act, 1972, VAT is levied on a value, which together with the VAT itself, equals the full price charged to the customer, including any elements of duty or other taxation which the price may cover. No new principle is involved. The method of charging car tax and VAT are, of course, taken into account when the rates of the two taxes are under consideration.