Value Added Tax

HC Deb 30 April 1980 vol 983 cc548-9W

Mr. Emery

asked the Chancellor of the Exchequer what percentage of value added tax was raised by the 12½ per cent. rate of value added tax and by the 8 per cent. rate of value added tax prior to the standardisation of value added tax at 15 per cent. in the 1979 Budget.

Mr. Peter Rees

It is estimated that about 13 per cent. of VAT revenue was raised at the 12½ per cent. rate and 87 per cent. at the 8 per cent. rate.

Mr. Emery

asked the Chancellor of the Exchequer before the rise to 15 per cent., what percentage of revenue was raised by 8 per cent. and what was raised by 12½ per cent. value added tax.

Mr. Peter Rees

It is estimated that in the financial year 1978–79, about 7½ per cent. of Government revenue was raised by the 8 per cent. rate of VAT and a little over 1 per cent. at the 12½ per cent. rate.