§ Mr. Skeetasked the Secretary of State for Energy what is the value added tax on natural gas in each Community country; and what would be the yield of a 10 per cent. and 15 per cent. value added tax on gas in the United Kingdom.
§ Mr. Peter ReesI have been asked to reply.
EEC member States do not distinguish between natural and other gas for VAT purposes. The following are the rates of VAT applying to supplies of gas in each member State:
866W
per cent. Belgium 6 (a) Denmark 20¼ France 17.6 Germany 13 Ireland 0 (b) Italy 6 Luxembourg 5 (c) Netherlands 18 United Kingdom 0 Notes: (a) Gas supplied in connection with the renting of housing is exempt. (b) Domestic supplies only. Supplies to industrial consumers are charged at 16 per cent.
(c) Gas supplied to market gardens is charged at 4 per cent.
The full year revenue yield of a VAT charge on gas in the United Kingdom would be about £175 million if the rate were 10 per cent. and about £260 million at 15 per cent.