§ Mr. Banksasked the Chancellor of the Exchequer what rates of value added tax are applicable to nuclear and chemical fall-out shelters.
§ Mr. Peter ReesWhile the precise circumstances of individual cases can affect the position, the installation of such a shelter generally amounts to the construction or alteration of a building, and the supply of installation services, together with the necessary materials, will therefore usually qualify for VAT zero-rating.
§ Mr. Banksasked the Chancellor of the Exchequer what is the number of people employed, and what cost is involved in administering value added tax as compared with the number of personnel and costs of levying purchase tax.
§ Mr. Peter Rees[pursuant to his reply, 22 May 1980]: It is estimated that the starring effort employed in 1979–80 on the collection of VAT, including staff engaged on administrative support work, was equivalent to about 11,800 man years at a cost of approximately £105 million. Some 2,000 staff were engaged directly on collecting and administering purchase tax, but the cost of these and the relevant support staff cannot now be realistically calculated.