Value Added Tax

HC Deb 12 July 1982 vol 27 cc282-3W

Mr. Kenneth Carlisle

asked the Chancellor of the Exchequer what is the total yield of value added tax in the last tax year for which figures are available, and the total costs of collection of that tax.

Mr. Bruce-Gardyne

Net receipts of VAT in 1980–81, the latest year for which figures are available, were £10,966.6 million. The cost of administration was £128.8 million.

Mr. Kenneth Carlisle

asked the Chancellor of the Exchequer by how much the base level of value added tax would need to be raised to replace the combined yield to the Exchequer of income tax and rate revenue.

Mr. Bruce-Gardyne

To replace the combined yield of income tax and rates in this way it would be necessary to aim at the quadrupling of the existing yield of value added tax. It is not possible to make a reliable estimate of what the standard rate of VAT would have to be for a change of this magnitude.