§ Mr. Evennettasked the Chancellor of the Exchequer what alternatives his Department has to vehicle excise duty; why they have not been introduced; and if he will make a statement.
§ Mr. HayhoeThe possibility of abolishing VED and replacing it with alternative sources of revenue was considered in 1979. The Government decided then that, on balance, the benefits did not justify such a major change. However, the tax system is kept under regular review and the report by the Public Accounts Committee on VED evasion and enforcement is receiving careful consideration.
§ Mr. Evennettasked the Chancellor of the Exchequer if he will publish in the Official Report estimates of the revenue loss resulting from evasion of vehicle excise duty for each of the last five years.
§ Mrs. ChalkerI have been asked to reply.
The extent to which vehicle excise duty is evaded cannot be measured precisely, but a survey conducted by my Department in 1977–78 indicated a level of evasion of 7 to 9 per cent. for cars and 10 to 13 per cent. for goods vehicles and motor cycles. The Department is undertaking similar further work this year.
§ Mr. Evennettasked the Chancellor of the Exchequer if he will publish in the Official Report the total revenue collected as vehicle excise duty for each of the last five years.
§ Mrs. ChalkerI have been asked to reply.
The revenue from vehicle excise duty in each of the last five financial years was as follows: 185W
£ million 1979–80 1,162 1980–81 1,360 1981–82 1,618 1982–83 1,840 1983–84 1,992