§ Mr. MacGregorasked the Chancellor of the Exchequer whether he will estimate the amount paid in value added tax, per annum, by a family of man, wife 518W and two children, with average male earnings, and with twice average male earnings and by a retired couple with a modest occupation pension in addition to the state pension.
§ Mr. Robert SheldonAnalyses of the incidence of indirect taxes and social benefits are made annually and published in "Economic Trends" of which copies are available in the Library. The analysis for 1975 was published in December 1976 and is the latest available. It is estimated that the amount of VAT paid in 1975 by a family of two adults and two children with earnings of £60.80 a week and child benefit of £1.50 a week was on average about £115. For a similar family with earnings of £121.60 a week and child benefit the amount was on average about £250.
Taking a modest occupational pension as £15 a week, a retired couple receiving also the retirement pension of £18.50 a week paid on overage in 1975 about £85 in VAT. This estimate is derived from the expenditure of a very small sample and is therefore particularly uncertain.