Value Added Tax

HC Deb 12 November 1984 vol 67 cc88-9W

Mr. Best

asked the Chancellor of the Exchequer if he will estimate the revenue in a full year from the imposition of value added tax at the standard rate on each of (a) children's clothing, (b) children's shoes, (c) fuel, (d) all food currently zero-rated, (e) books and (f) newspapers and periodicals.

Mr. Hayhoe

It is estimated that the net additional full year revenue, at 1984–85 prices, would be about:

£ million
(a)	Children's clothing	200
(b)	Children's footwear	50
(c)	Fuel	1,350
(d)	Food	3,500
(e)	Books	85
(f)	Newspapers and periodicals	290

Mr. Best

asked the Chancellor of the Exchequer if he will estimate the effect in a full year (a) on the increase of the retail price index and (b) on consequent increase in payment of benefits of the imposition of value added tax at the standard rate on: (i) books and (ii) newspapers and periodicals.

Mr. Hayhoe

The impact effect on the RPI is estimated to be less than 0.1 per cent. for books, and about 0.2 per cent. for newspapers and periodicals.

Each 1 per cent. increase in social security benefit rates is estimated to cost about £350 million in a full year.

Mr. Adley

asked the Chancellor of the Exchequer what representation he has received about value added tax on books; and what support he expects for such a proposal.

Mr. Hayhoe

I refer my hon. Friend to the answer I gave on 22 October 1984 to the hon. Member for Denton and Reddish (Mr. Bennett) at column464. I cannot usefully comment on the degree of public support such a proposal might or might not receive, but the many representations on this subject have been carefully noted.

Mr. Corbett

asked the Chancellor of the Exchequer whether he will publish in the Official Report the amount of value added tax paid since 1 May to the latest convenient date in respect of hot food and drink purchased from take-aways.

Mr. Hayhoe

[pursuant to his reply, 9 November 1984, c. 18]: Value added tax paid in respect of hot take-away food and drink is not separately identified in Customs and Excise accounts. Estimates of the amounts paid have to be based on consumer expenditure data, and information on expenditure after the Budget change will not be available for some time. I have no reason to depart from the estimates given in footnote (aa) to table 4.2 of this year's Financial Statement and Budget Report.