HC Deb 29 April 1993 vol 223 cc503-4W
Ms Harman

To ask the Chancellor of the Exchequer what estimate he has made of the revenue from value added tax paid by charities on domestic fuel and power in real terms at 1993 prices, in the years 1994–95 and 1995–96.

Sir John Cope

In 1993 prices, we estimate that applying VAT to charities' non-business use of fuel and power will raise around £10 million in 1994–95 and around £25 million in 1995–96.

Ms Harman

To ask the Chancellor of the Exchequer what representations he has received favouring his proposal to charge value added tax on supplies of fuel and power for domestic, residential and charity non-business use.

Sir John Cope

[holding answer 26 April 1993]: My right hon. Friend has received a number of such representations. Among other things these support the need to use the tax system to help fulfil our Rio commitment, support the need to raise revenue to tackle the deficit and support the policy of doing this through indirect taxation rather than income tax.

Mr. Alfred Morris

To ask the Chancellor of the Exchequer, pursuant to his answer of 22 April,Official Report, column 180, what is his estimate of the annual revenue for value added tax on pensioners' payments of standing charges for gas and electricity when the rate is (a) 8 per cent. and (b) 17.5 per cent.

Sir John Cope

[holding answer 27 April 1993]: Table 4.1 of the FSBR provides estimates of the total revenue effect of applying VAT to domestic fuel and power. Applying VAT to pensioners' payments of standing charges is estimated to raise around 3 per cent. of this total, or around £30 million in 1994–95 and £70 million in 1995–96. As my right hon. Friend the Chancellor made clear in his Budget speech, extra help will be given through benefits to those pensioners and others on low incomes who are dependent on income-related benefits.