§ Mr. Ralph Howellasked the Chancellor of the Exchequer by what percentage the basic rate of value added tax would need to be raised to compensate for a reduction of 1 per cent. in the standard rate of income tax.
§ Mr. Robert SheldonThe standard rate of VAT would need to be raised from 8 per cent. to 9 per cent.
§ Mr. Freudasked the Chancellor of the Exchequer what is the cost of printing and publishing the "VAT Newsletter"; what research has been done into the acceptability and comprehension of this publication; and if he will make a statement.
§ Mr. Robert Sheldon"VAT News" is intended to advise VAT registered traders of changes in the tax which may affect their businesses. The latest edition—No. 13—cost about £160,000 for printing and posting. It was issued in November 1977 primarily to explain the changes in the law which were made in last year's Finance Act, and in consequential358W Treasury orders, to implement the Sixth EEC Directive on VAT as from 1st January 1978. As I explained during the Finance Bill debates, many of these changes were technical in nature and had little practical effect on most registered traders. This was also explained in the introductory paragraph of "VAT News" 13. Nevertheless, it was necessary to publicise these changes since it was not possible to single out those traders who might be affected from the generality of the 1¼ million registered businesses.
The Commissioners of Customs and Excise are conscious of the need to simplify their publications, including "VAT News", so far as this is possible considering the wide range of businesses which are registered for VAT. To this end they consult interested trade bodies, whenever practicable, and are always glad to receive constructive suggestions as to how their publications could be simplified.