§ Mr. Quentin DaviesTo ask the Chancellor of the Exchequer what would be the annual gain to the Exchequer of imposing VAT at the standard rate on(a) books, (b) magazines, (c) newspapers, or (d) all currently non-rated or zero-rated goods and services other than fresh food and children's clothes.
§ Sir John CopeThe extra revenue accruing, in a full year, from applying the standard rate of VAT to the zero-rated items listed is approximately estimated, for the last financial year, at:
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Revenue effect1 1991–92 (£ billion) (a) Books 0.3 (b) Magazines 0.2 (c) Newspapers 0.5
Revenue effect1 1991–92 (£ billion) (d) Goods and Services other than Food and Children's Clothing Domestic Fuel and Power 2.5 Construction of New Dwellings 23.4 Passenger Transport 2.3 Water and Sewerage Services 0.5 Drugs and Medicines on Prescription 0.4 1 These estimates make no allowance for the fact that changes in taxation may cause people to change their behaviour. These estimates cannot be added together to give a meaningful total. Not all expenditure under these headings is zero-rated. 2 Includes zero-rated expenditure on land purchased for construction of new dwellings. These figures are based on information provided in table 4B. 1 in the 1992–93 "Financial Statement and Budget Report".
Goods and services which are not standard-rated or zero-rated are either exempt from VAT or out of scope. No estimates are available for these.