HC Deb 14 February 1990 vol 167 cc292-3W
Mr. Stanbrook

To ask the Chancellor of the Exchequer if he will make a statement as to how far charities and non-profit-making organisations other than local authorities are covered by article 13A1 of the sixth European Community directive on harmonisation of value added tax.

Mr. Ryder

Services and goods supplied by charities are exempt from VAT under article 13A1 of the EC sixth VAT directive if they are linked to welfare and social security work, or the protection of children and young people. VAT exemption under article 13A1 also applies to services closely linked to sport or physical education and certain cultural services supplied by non-profit-making organisations (but some member states, including the United Kingdom, under a permitted derogation, continue to tax such supplies); to children's or young people's education, school or university education, vocational training or retraining provided by bodies established for this purpose; to certain supplies of staff by religious or philosophical institutions; to activities of public radio and television bodies other than those of a commercial nature; and, provided that exemption is not likely to cause distortion of competition, to services and closely related goods supplied by a wide range of non-profit-making organisations to their members, and to services and goods supplied by such organisations and by various charitable bodies in connection with their fund-raising events. Furthermore, charities and other non-profit-making organisations engaged in certain activities, such as hospital and medical care, specified by article 13A1 as being in the public interest, may exempt their services if carried out in recognised establishments or by staff with a statutory qualification.

Mr. Chris Smith

To ask the Chancellor of the Exchequer what would be the cost if the value added tax levied on energy efficient appliances and insulation material was reduced to(a) 10 per cent., (b) 5 per cent. and (c) zero.

Mr. Ryder

Information is not available on which to base estimates.

Mr. Chris Smith

To ask the Chancellor of the Exchequer what would be the cost of reducing the value added tax levied on recycled material to(a) 10 per cent., (b) 5 per cent. and (c) zero.

Mr. Ryder

Information is not available on which to base estimates.

Mr. Chris Smith

To ask the Chancellor of the Exchequer what would be the cost of reducing the value added tax rate levied on non-recyclable, non-biodegradable packaging to(a) 10 per cent., (b) 5 per cent. and (c) zero.

Mr. Ryder

There would be no measurable revenue loss because normal packaging is regarded as an integral part of the goods it contains and is therefore taxed at the same rate when the goods are supplied.

Mr. Chris Smith

To ask the Chancellor of the Exchequer what would be the cost to the Exchequer and the expected take-up of fitting cars with catalytic converters if the value added tax of fitting catalytic converters was reduced to(a) zero (b) 5 per cent. and (c) 10 per cent.

Mr. Ryder

Information on which to base an estimate is not readily available.

Mr. Chris Smith

To ask the Chancellor of the Exchequer how much revenue would be raised if the value added tax levied on energy efficient appliances and insulation material was increased to(a) 20 per cent., (b) 25 per cent. and (c) 30 per cent.

Mr. Ryder

Information is not available on which to base estimates.

Mr. Chris Smith

To ask the Chancellor of the Exchequer how much revenue would be raised if the value added tax rate levied on non-recyclable, non-biodegradable packaging was(a) kept to 15 per cent. and (b) raised to (i) 20 per cent., (ii) 25 per cent. and (iii) 30 per cent.

Mr. Ryder

No measurable extra revenue would accrue because normal packaging is regarded as an integral part of the goods it contains and is therefore taxed at the same rate when the goods are supplied.

Mr. Chris Smith

To ask the Chancellor of the Exchequer how much value added tax was paid per annum by a family consisting of a married man on three quarters of average male earnings, his wife and two children in 1978–79; and what is the most recent estimate.

Mr. Ryder

Figures for 1978–79 have been placed in the Library of the House and estimates for 1989–90 were given in reply to the hon. Member for Newcastle upon Tyne, East (Mr. Brown) on 8 January 1990, at column559.

Mr. Chris Smith

To ask the Chancellor of the Exchequer (1) how much value added tax was paid per annum by a family consisting of a married man on(a) twice and (b) three times average male earnings, his wife and two children in 1978–79; and what is the most recent estimate;

(2) how much value added tax was paid per annum by a family consisting of a married man on half of average male earnings, his wife and two children in 1978–79; and what is the most recent estimate.

Mr. Ryder

The levels of earnings specified fall outside the range for which reliable estimates of household VAT payments can be made.

Mr. Chris Smith

To ask the Chancellor of the Exchequer how much would be raised if the value added tax levied on recycled material was increased to(a) 20 per cent., (b) 25 per cent. and (c) 30 per cent.

Mr. Ryder

Information is not available on which to base estimates.

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