§ Mr. BeithTo ask the Chancellor of the Exchequer whether he has put forward any proposals to permit lower VAT rates within the EC on environmentally friendly products; and whether he will make a statement.
§ Mrs. Gillian Shephard[holding answer 6 December 1991]: In European Community discussions we have suggested that the possibility of applying a reduced rate of VAT to environmentally friendly goods should be kept open. This would allow member states to consider that option should it prove desirable in the light of further thinking about environmental taxation in the Community. The Government have no present intention of introducing a reduced rate of VAT.
§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer what is his most recent estimate of how much VAT is paid per annum by(a) an average family and (b) a married couple on average income; and how much they paid in 1978–79.
§ Mrs. Gillian Shephard[holding answer 9 December 1991]: A married couple with two children on average male earnings would pay about 5.4 per cent. of their earnings in VAT in 1991–92 compared with 2.7 per cent. in 1978–79. The comparable figures for a married couple with no children would be approximately 5.2 per cent. for 1991–92 and 2.6 per cent. for 1978–79.