§ Mr. Ralph Howellasked the Chancellor of the Exchequer what would be the 216W price of a bottle of whisky, a pint of beer, and 20 cigarettes, if the duties were increased in line with (a) the retail price index, and (b) the index of average earnings, since 1960; and how much extra revenue would thus accrue.
§ Mr. Peter Rees,pursuant to his reply [Official Report, 9 July 1979; Vol. 970, c. 34], gave the following answer:
Prices of these kinds of goods vary but typical prices of popular brands might be:
(a) (b) Bottle of whisky (26⅔ fluid ounces) £7.35 £10.50 Pint of beer (at 1037 degrees of gravity) 43p 50p 20 standard tipped cigarettes 80p £1.10 The extra revenue would be about (a) £1,250 million and (b) £2,750 million, respectively, in a full year.
The figures have been prepared by applying the appropriate indices to the rates of duty in 1960. They make no allowance for the abatement of the duties which took place when VAT was introduced in 1973; and accordingly they overstate the amounts needed to restore the real value of the taxation of these goods.