§ Mr. Ashdownasked the Chancellor of the Exchequer if he will give detailed estimates of the projected loss of revenue to the Exchequer from the possible abolition of value added tax on credit transactions between registered traders.
§ Mr. BrookeOf the order of £2.3 billion a year. This is an estimate of the tax charged on taxable supplies to businesses which is at present irrecoverable by them. It190W includes estimates of VAT both on businesses expenditure on cars and entertainment and on taxable supplies to registered businesses with some exempt outputs. Although this loss could be prevented, it could only be at the cost of extra complexity both in the operation of the tax and for the trader.