HC Deb 13 December 1984 vol 69 cc568-9W
24. Mr. Wareing

asked the Chancellor of the Exchequer what plans he has for extending the scope of value added tax.

Mr. Hayhoe

Although the Government favour a shift in the burden of taxation from taxes on earnings to taxes on spending, we have no set views at present on how this might best be done.

27. Mr. Spearing

asked the Chancellor of the Exchequer what reply Her Majesty's Government have made to the reasoned opinion received from the Council of the European Communities regarding the incidence of value added tax zero rate in the United Kingdom.

Mr. Hayhoe

I refer the hon. Member to the answer I gave him on 4 December.

7. Mr. Madden

asked the Chancellor 'of the Exchequer what has been the Government's response to the European Economic Community reasoned opinion on the sixth value added tax directive regarding value added tax zero rating in the United Kingdom.

Mr. Hayhoe

Our reply makes it absolutely clear that the United Kingdom Government do not accept the views set out in the reasoned opinion.

Mr. Sayeed

asked the Chancellor of the Exchequer (1) if he will estimate the amount of tax raised by increasing value added tax to 20 per cent. for (a) all items which currently have 15 per cent. value added tax imposed and (b) all items which currently have 15 per cent. value added tax imposed on them, except those associated with the building trade;

(2) what is his estimate of the expected amount of value added tax raised in a full year on those areas of the building trade liable to value added tax at 15 per cent.

Mr. Hayhoe

I shall let my hon. Friend have a reply as soon as possible.

Mr. Sayeed

asked the Chancellor of the Exchequer what is his estimate of the amount of tax that would be raised by imposing value added tax at 15 per cent. on all books, periodicals and newspapers, except those specifially published for educational purposes.

Mr. Hayhoe

Imposing VAT at 15 per cent. on all books, newspapers and periodicals would raise about £375 million in a full year at 1984–85 prices. The effect of excluding those specifically published for educational purposes would depend on how broadly the term "educational" was defined.