§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the revenue yield from value added tax at 17 per cent. on the sale of new houses in the current financial year on the basis of estimated sales in 1986 and 1987; and if he will publish in the Official Report a table showing which European Economic Community countries propose value added tax on (a) new housing and (b) other housing.
§ Mr. BrookeIt is estimated that the net additional full-year revenue of imposing value added tax at 17 per cent. on private new housing would be about £775 million (at 1987–88 prices), based on estimated sales in 1986.
In Portugal and the Federal Republic of Germany, sales of new houses are understood to be exempt from value added tax, but subject to specific property taxes. The other European Economic Community countries appear to tax private new housing at either the standard or reduced rates of value added tax.
Other housing transactions are generally exempt from value added tax in all the Community countries, although Italy is believed to tax sales made by registered traders. I regret that information about the tax treatment of housing in Greece is not available.
§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the revenue yield from value added tax at 15 per cent. on the estimated sales of new houses in 1986–87.
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§ Mr. BrookeIt is estimated that the net additional full-year revenue of imposing value added tax at 15 per cent. on private new housing would be about £675 million (at 1986–87 prices), based on estimated sales in 1986.