Taxation (Hansard, 1 December 1987)

HC Deb 01 December 1987 vol 123 c544W 544W

§ Mr. Pendry
To ask the Chancellor of the Exchequeir what is his estimate of the effect on the retail price index of raising an extra £1,000 million in taxation from each of tobacco products, beer, wine and spirits, petrol and value added tax.

§ Mr. Peter Lilley
The estimated effect is as follows:

Estimated effect on the retail price index per cent.

Raising an extra £1,000 million in a full year at 1988–89 prices in taxation from:

Tobacco Products 0.8

Beer 0.6

Wine and Spirits 1.9

Petrol 0.4

Value Added Tax 0.5

Because of the very large changes in duty levels involved for tobacco and alcoholic drinks, the estimates for those products are subject to wide margins of error.

	Estimated effect on the retail price index per cent.
Raising an extra £1,000 million in a full year at 1988–89 prices in taxation from:
Tobacco Products	0.8
Beer	0.6
Wine and Spirits	1.9
Petrol	0.4
Value Added Tax	0.5
Because of the very large changes in duty levels involved for tobacco and alcoholic drinks, the estimates for those products are subject to wide margins of error.