§ Mr. Pardoeasked the Chancellor of the Exchequer if he will estimate the revenue which would be obtained from a 5 per cent. rate of value added tax levied on all the goods and services which are currently zero rated; and if he will estimate the effect of such a tax on the retail price index.
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§ Mr. Robert SheldonOn the basis of consumers' expenditure, of which about 30 per cent. is zero rated, it is estimated that the revenue yield would be about £1,150 million in a full year; the effect on the RPI would be an increase of about l½ per cent. if the tax were fully passed on in increased prices.
§ Mr. Newtonasked the Chancellor of the Exchequer what are the rates of value added tax applicable in the EEC countries to transactions in antiques and in works of art.
§ Mr. Robert SheldonThe rates of VAT applicable in the EEC countries to supplies of antiques and works of art are as follows:
Country Antiques Per cent. Works of Art Per cent. Belgium 18 18 Denmark 15 15 France 17.6* 17.6*† Germany 11‡ 5.5 Holland 4 4 Ireland 10 10 Italy 35§ 35║ Luxembourg 10 10 United Kingdom 8¶ 8¶ * Public auction sales are not liable to VAT; otherwise a "dealer's margin" scheme operates. † Supplies by the original artist are outside he scope of VAT. ‡ Certain printed matter is chargeable at 5.5 per cent. § Books are chargeable at 6 per cent. ║Supplies by living artists (except for original engravings, prints and lithographs) are chargeable at 14 per cent. ¶ A "dealer's margin" scheme operates.