Value Added Tax

HC Deb 05 February 1980 vol 978 cc132-3W

Dr. Edmund Marshall

asked the Chancellor of the Exchequer whether he will raise the threshold for eligibility to pay value added tax in accordance with the changing value of money.

Mr. Peter Rees

The VAT registration threshold is kept under continuous review and I will bear the hon. Member's suggestion in mind.

Mr. Ralph Howell

asked the Chancellor of the Exchequer what would be the increased yield from value added tax if the United Kingdom had the same rates as in Germany, charged on the same goods and services as in Germany.

Mr. Peter Rees

I regret that the information cannot be provided without a disproportionate expenditure of time and effort. The coverages of the two rates of VAT in West Germany do not correspond with the coverage of VAT in the United Kingdom.

Miss Joan Lester

asked the Chancellor of the Exchequer what further consideration he has given to removing value added tax from clothing and shoes purchased for children.

Mr. Peter Rees

Articles designed as clothing or footwear for young children and not suitable for older persons are already zero rated for value added tax under group 17 of schedule 4 to the Finance Act 1972. At my request, Customs and Excise has been conducting a full review of the operation of the relief and I shall inform the House of the Government's conclusions in due course.