§ Mr. WoodTo ask the Chancellor of the Exchequer when he expects Her Majesty's Customs and Excise to publish the consultation document on items other than non-domestic construction covered by the European Court judgment on value added tax zero rating, which was promised in the Economic Secretary's statement to the House on 21 June,Official Report, column 958.
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§ Mr. LilleyThis document has now been published, and copies are available in the Library.
§ Mr. Teddy TaylorTo ask the Chancellor of the Exchequer what is his latest assessment of the extra revenue which would accrue to the Treasury if value added tax were levied at standard rate(a) for industry and commerce, to gas, electricity, water, sewerage, news services, protective clothing and footwear and (b) to all non-industrial and commercial buildings, as advocated by the European Economic Community Commission in the European Court of Justice; and if he will make a statement.
§ Mr. Lilley[holding answer 21 June 1988]: If value added tax were levied at the standard rate on supplies made to commerce and industry of gas, electricity, water, sewerage, news services and protective clothes and footwear it is estimated that the full-year net revenue yield would be about £25 million at 1988–89 prices.
If value added tax were levied at the standard rate on all non-industrial and commercial buildings—that is, private sector housing—it is estimated that the full-year net revenue yield would be about £925 million at 1988–89 prices. However, I would refer my hon. Friend to my statement on the European Court's judgment on 21 June, at columns 957–58. The court ruled that the United Kingdom is not in breach of its treaty obligations by zero-rating non-industrial and commercial buildings.