Value Added Tax

HC Deb 17 July 1978 vol 954 cc55-7W

Mr. Ian Stewart

asked the Chancellor of the Exchequer what are his latest

the balance of payments, (b) the surplus or deficit on the current account of the balance of payments per capita, (c) the surplus or deficit on the invisible account of the balance of payments, and (d) the surplus or deficit on the invisible account per capita.

Mr. Robert Sheldon

The figures are given below. Separate figures for Belgium and Luxembourg are not available.

estimates for the additional revenue that would arise from unifying the two present value added tax rates into a single rate of (a) 10 per cent., (b) 12½ per cent., (c) 15 per cent. and (d) 20 per cent., and the impact of such changes on the retail price index and the pensioners' price index.

								Retail price index (per cent.)
						Rate of VAT	Revenue	General	pensioners
							(per cent.)	(£ million)
(a)	…	…	…	…	…	10	700	0.8	½
(b)	…	…	…	…	…	12½	1,800	2¼	1½
(c)	…	…	…	…	…	15	2,850	3½	2½
(d)	…	…	…	…	…	20	4,850	6	4¼

The higher rates of VAT specified would result in substantial changes in the pattern of expenditure, and estimates of the effects are correspondingly uncertain.