§ Mr. MadelTo ask the Chancellor of the Exchequer if he will consider introducing a lower rate of value added tax on those items which the European court has ruled should carry value added tax; and if he will make a statement.
§ Mr. Lilley[holding answer 4 July 1988]: It has been consistent Government policy to keep VAT simple by having a single positive rate of VAT, coupled with zero rates where appropriate. That remains the case.
§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer if he will provide details of the estimated value added tax which will be gathered from the insurance industry after the mitigating measures in consequence of the European court's decison on value added tax.
§ Mr. Lilley[holding answer 4 July 1988]: Virtually all the net yield (about £75 million) from the insurance industry would come from value added tax charged on non-domestic construction and rents. Most of the remainder would come from VAT charged on fuel and power.