HC Deb 08 March 1979 vol 963 c772W
23. Mr. Rippon

asked the Chancellor of the Exchequer what is his estimate of the additional revenue that would be produced in a full financial year by increasing the rate of value added tax on goods and services at present charged at 8 per cent. to (a) 10 per cent. (b) 12½ per cent. and (c) 15 per cent.

Mr. Robert Sheldon

£800 million, £1,800 million and £2,750 mililon, respectively. If the 12½ per cent. higher rate was raised with the standard rate to 15 per cent. the yield would be £2,850 million.

Mr. Rippon

asked the Chancellor of the Exchequer what he estimates it would cost the Exchequer to raise the value added tax thresholds to (a) £15,000, (b) £20,000 and (c) £25,000.

Mr. Robert Sheldon

The loss of revenue would depend upon the number of registered persons who chose to de-register. If the de-registration limit was increased proportionately to the registration limit and the proportion of those eligible to do so which de-registered was similar to the proportions when the limits were raised in October 1977 and April 1978, it is estimated the revenue loss would be:

Registration limit taxable turnover a year(£) Revenue lossmillion)
15,000 10
20,000 15
25,000 25