§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will update his replies to the hon. Member for Norfolk, North, Official Report, 13 February columns 691 and 692, comparing rates of value added tax and effective rates of value added tax in each of the EEC member States and in Sweden.
§ Mr. Peter ReesThe information is given in the following table:
VAT rates (Per cent.) Effective VAT rate 1977 (Per cent.) United Kingdom 0,15 5.1 (Post 18 June 1979 8.0 estimate) Belgium 6, 16, 25 11.5 Denmark 22 14.4 France 7, 17.6, 33⅓ 13.4 Germany 6.5, 13 9.4 Ireland 0, 10, 25 9.2 Italy 2*, 8, 15, 18, 35 8.5 Luxembourg 2, 5, 10 8.3 Netherlands 4, 18 12.6 Sweden (VAT rate) 20.63 8.1 * Temporary rate. Notes: (1) Standard rates are in italics. (2) Exports are zero-rated generally. Apart from the United Kingdom and Ireland, some other Members also apply a zero-rate domestically but with a minimal coverage. (3) The information relating to effective value added tax rates in the European Community which was given on 13 February is still the most recent available. (4) The effective rate has been calculated by taking VAT revenue as a proportion of consumers' expenditure, on the basis of published OECD statistics relating to 1977.
§ Mr. Hendersonasked the Chancellor of the Exchequer when and why it was decided to charge value added tax on postage stamps when supplied on first day covers; and if he will make a statement.
§ Mr. Peter ReesValue added tax has been charged on the full selling price of all first day covers supplied by the Post Office philatelic bureau and by dealers registered for the tax since 1 April 1980. This followed discussions held by Customs and Excise with the Post Office and trade associations to clarify the liability to tax in this area, and to ensure that382W there was no distortion of competition between the private and public sectors. It is, of course, entirely consistent with the nature of the tax that collectors' items of this kind should be subject to tax.