§ Mr. Wigginasked the Chancellor of the Exchequer to what rate value added tax could be lowered and produce the same yield if all exemptions to the tax were removed.
§ Mr. HayhoeAbout 9 per cent. if the tax was levied on all items of consumers' expenditure except rates, other statutory charges and certain sevices for which there would be practical difficulties.
§ Mr. Gregoryasked the Chancellor of the Exchequer what estimated revenue would be obtained in a full year from introducing value added tax at a rate of 25 per cent. on each of the goods which were formerly taxed at the 25 per cent. rate under purchase tax, broken down by the former categories used for that purpose.
§ Mr. HayhoeIt is estimated that levying value added tax at 25 per cent. on all items which were subject to purchase tax at 25 per cent. in 1972–73 (its last year of operation) would yield net additional revenue at 1984–85 prices of about £1,800 million in a full year. However, I regret that insufficient information is available on which to base a breakdown of this estimate into the detailed categories of goods used formerly for purchase tax purposes. The estimate includes value added tax on cars and motor cycles, which are now subject to an additional charge (car tax) introduced with value added tax to maintain a level of taxation comparable to that under purchase tax.
§ Mr. Peter Bruinvelsasked the Chancellor of the Exchequer how many representations he has now received against any introduction of value added tax on (a) newspapers, (b) books and periodicals, (c) children's shoes and (d) children's clothes; and if he will make a statement.
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§ Mr. HayhoeThe approximate number of representations which have been received by Treasury Ministers on the topics mentioned is as follows:
- (a) and (b) 900
- (c) 320
- (d) 40