§ Mr. MichaelTo ask the Chancellor of the Exchequer what is his best estimate of the additional money that would have to be found by charitable organisations in England and Wales in the event of harmonisation of value added tax leading to the removal of zero rating at present in force, in order for such organisations to avoid a reduction in their work or grant-giving.
§ Mr. RyderThe Government estimate that United Kingdom charitable organisations would pay £300 million to 400 million per year in additional VAT if the current zero rates were removed and replaced by significantly higher rates of VAT in the single market. But the Government will oppose any tax approximation proposals which further restricts our ability to use zero rates.
§ Mr. HarrisTo ask the Chancellor of the Exchequer what representations he has received on behalf of the Royal National Lifeboat Institution for the continuation of value added zero tax rating on lifeboats; and if he will make a statement.
§ Mr. Ryder[holding answer 18 October 1990]: My right hon. Friend has received more than 100 representations on behalf of the Royal National Lifeboat Institution. The Government are very conscious of the dedication and heroic service of this organisation and see no reasons why the existing zero rates for this and other charitable bodies—and all other United Kingdom zero rates—should not remain after 1992. EC decisions in tax matters require the unanimous agreement of all member states and there is no question of any unwelcome proposals on VAT approximation being forced upon us.