HC Deb 21 April 1993 vol 223 cc95-6W
Mr. Bowis

To ask the Chancellor of the Exchequer how much revenue he estimates would be raised if(a) Parcelforce and (b) the Royal Mail were subject to value added tax.

Sir John Cope

[holding answer 20 April 1993]: Businesses may reclaim VAT charged. On this basis, the estimated revenue effects are:

  1. (a) negligible.
  2. (b) £180 million.

Mr. Bowis

To ask the Chancellor of the Exchequer what consideration he has given to permitting the Post Office to reclaim value added tax, following the imposition of value added tax on intra-Community transport costs; and what is his estimate of the cost to the Post Office of value added tax on these costs.

Sir John Cope

[holding answer 20 April 1993]: The Post Office is registered for VAT purposes and is able to reclaim VAT incurred on its purchases subject to the normal rules. On the ground of commercial confidentiality, it would be inappropriate for me to comment on the additional costs incurred by the Post Office as a result of the recent VAT changes in the treatment of intra-EC freight transport service.