§ Mr. Wardasked the Chancellor of the Exchequer if he will estimate the percentage of present value added tax receipts which would be lost to the Exchequer if all value added tax registered businesses with a turnover of less than £50,000 per annum were exempted from the payment of value added tax.
§ Mr. John MooreRaising the registration and deregistration limits for VAT to £50,000 taxable turnover a year would cause such a change in the nature of the tax that it is not possible to make a realistic estimate of the revenue loss. My hon. Friend might like to know that in 1982–83 about 4½ per cent. of the tax paid (7 per cent. of net receipts) by registered traders who normally pay tax to Customs and Excise was by traders with taxable turnover not exceeding £50,000 in the year.