§ Mr. Deakinsasked the Chancellor of the Exchequer if he will state the approximate sum, without adjustment, which would need to be paid by Her Majesty's Government in respect of own resources value added tax assessments levied at a rate of 1.4 per cent. of the base, together with the approximate percentage that sum constitutes of the likely income from value added tax in the United Kingdom during 1986.
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§ Mr. Brooke[pursuant to his reply, 9 July 1986, c. 95]: The Fontainebleu abatement system automatically ensures that our own VAT rate will be very much less than 1.4 per cent. even if the VAT rate in other member states is at that level. As a matter of arithmetic, however, and on the basis of the 1 per cent. VAT base agreed for 1986, a rate of 1.4 per cent. would imply a gross VAT contribution for the United Kingdom of 4,635 mecu (some £2,972 million at current exchange rates). £2,972 million represents about 14.4 per cent. of the estimated VAT yield in 1986–87.