§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the number of enterprises which had turnovers below the minimum level for value added tax in each of the last four years, the minimum level which would be required to compensate for the rise in the retail price index since value added tax was introduced and the estimated loss of revenue in the current tax year if such a price adjusted minimum level had been in force.
§ Mr. Robert SheldonIt is not known how many businesses are not required to register for VAT because their taxable turnover is below £5,000 a year. The exemption limit would need to be raised to £9,600 to take account of the increase in the retail price index. It is estimated that the loss of revenue would be about £40 million a year.