§ Mr. JenkinTo ask the Chancellor of the Exchequer what limit the recent agreements in the EC on the harmonisation of rates of VAT place on the amount by which the VAT starting threshold can be raised.
§ Sir John Cope[holding answer 4 November 1992]: The recent agreements in the EC will not affect the level of the VAT registration threshold which is governed by the EC Sixth VAT Directive and current United Kingdom legislation.
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§ Mr. JenkinTo ask the Chancellor of the Exchequer if he will consider raising the VAT threshold to £50,000 and beyond.
§ Sir John Cope[holding answer 4 November 1992]: The EC Sixth VAT Directive which the then United Kingdom Government agreed in 1977 constrains increases in the VAT registration threshold to what is needed to maintain its value in real terms.
§ Mr. JenkinTo ask the Chancellor of the Exchequer what consideration he is currently giving to problems relating to the current VAT penalty regime.
§ Sir John Cope[holding answer 4 November 1992]: The second phase of the review of the serious misdeclaration penalty regime was announced by my right hon. Friend the Chancellor in his Budget statement in March 1992. Wide ranging consultations have since taken place with the relevant trade and professional bodies. In addition, Customs have issued a consultative paper on default surcharge inviting comment on how the system might be made both more effective and acceptable.