HC Deb 20 June 1979 vol 968 cc585-7W
Mrs. Fenner

asked the Chancellor of the Exchequer what would be the cost of exempting from, or zero rating for, value added tax, the installation of alternative central heating boilers as replacements for oil-fired ones, in pursuance of the policy of saving oil imports.

Mr. Peter Rees

I regret that information is not available from which to make an estimate, because it is not known how many central heating systems would need to be replaced or at what cost.

Mr. Mike Thomas

asked the Chancellor of the Exchequer if he will publish in the Official Report his estimate of the impact of his increase in value added tax and petrol duty on a married couple where the husband earns £2,000, £2,500, £3,000, £3,500, £4,000, £4,500, £5,000, £5,500, £6,000, £6,500, £7,000, £7,500, £8,000, £8,500, £9,000, £9,500 and £10,000 a year, respectively, on the same basis as his estimates, Official Report, 12 June, column 261.

Mr. Peter Rees

, pursuant to the reply [Official Report, 18 June 1979], gave the following answer:

The information requested is as follows:

Cost of indirect tax measures (£ per week)
Gross pay (£ per year)
2,000 1.29
2,500 1.54
3,000 1.77
3,500 1.99
4,000 2.22
4,500 2.45
5,000 2.67
5,500 2.90
6,000 3.12
6,500 3.35
7,000 3.58
7,500 3.82
8,000 4.07
8,500 4.32
9,000 4.57
9,500 4.82
10,000 5.07

Mr. Cryer

asked the Chancellor of the Exchequer if he will list in the Official Report those categories of items subject to the 15 per cent. value added tax rate.

Mr. Peter Rees

, pursuant to his reply [Official Report, 19 June 1979], gave the following answer:

All supplies of goods and services which are not zero rated or exempt are subject to value added tax at 15 per cent. In effect, about half of all consumer expenditure is not chargeable with value added tax. Zero rating and exemption provide reliefs which include such important items as most food, heating and lighting, house prices and rents, fares on public transport, and children's clothing.

Mr. Thompson

asked the Chancellor of the Exchequer what will be the cost to the Exchequer in revenue forgone by allowing all value added taxpayers exemption on the first part of their turnover to the level at which value added tax becomes payable.

Mr. Peter Rees

, pursuant to his reply [Official Report, 19 June 1979], gave the following answer:

Up to about £800 million, depending on the assumptions taken.