VAT (Zero-rating) (Hansard, 19 June 1991)

§ Mr. Battle
To ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1991–92 and in a full year of abolishing value-added tax zero-rating on all items except food, children's clothing, and domestic fuel and power.

§ Mrs. Gillian Shephard
Estimates of the revenue effect of abolishing zero-rating on all items of domestic expenditure other than food, children's clothing, and fuel and power are as follows:
179W

£ billion

1991–92¹ 3.7

Full year ² 5.2

¹ Assuming a 1 April change

² Assuming all receipts in 1991–92 reflect VAT at 17.5 per cent.

§ Mr. Battle
To ask the Chancellor of the Exchequer if he will list all items currently subject to the zero rate of value added tax.

§ Mrs. Gillian Shephard
Schedule 5 to the VAT Act 1983 applies the zero rate of VAT to a wide range of goods and services. The main areas covered are listed in table 4B.1 of the "Financial Statement and Budget Report" for 1991–92 which is available in the House of Commons Library.

	£ billion
1991–92¹	3.7
Full year ²	5.2
¹ Assuming a 1 April change
² Assuming all receipts in 1991–92 reflect VAT at 17.5 per cent.