§ Ms. RichardsonTo ask the Chancellor of the Exchequer whether the supply of water, the provision of ancillary equipment such as valve gear and meters, and the maintenance and repair of equipment, machinery and mains will continue to be zero-rated for value added tax purposes.
§ Mr. Lilley[holding answer 11 January 1988]: The zero rating by the United Kingdom of water supplied to industry has been challenged by the Commission of the European Communities before the European Court of Justice. Until the court's judgment is delivered the consequences cannot be assessed.
The provision on their own of the other items referred to, and the repair of equipment, machinery and mains is currently subject to tax at the standard rate.
§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what was the average value added tax paid per household on all goods and services in 1979 and in 1986–87, at(a) current prices, (b) 1979 prices and (c) 1987 prices.
§ Mr. Lilley[holding answer 18 December 1987]: The latest year for which information is available is 1985.
Average value added tax paid per household (£ per year) 1979 1985 £ £ (a) Current prices 304 651 (b) 1979 prices 304 390 (c) 1987 prices1 547 701 1 June.
§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer what would be the impact on the retail prices index of imposing value added tax at 15 per cent. on(a) rail and bus fares and (b) all travel fares including air, bus, coach and rail.
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§ Mr. Lilley[holding answer 18 December 1987]: The impact effect on the retail prices index of imposing value added tax at 15 per cent. on rail and bus fares would be to increase the index by 0.2 per cent. Imposing value added tax at 15 per cent. on all travel fares including air, bus coach and rail would also raise the index by 0.2 per cent.