§ Ms. HarmanTo ask the Chancellor of the Exchequer what would be the impact on 1992–93 on the retail prices index of raising £1 billion from(a) tobacco products, (b) beer, (c) wine and spirits, (d) petrol, (e) VAT and (f) vehicle excise duty.
§ Sir John CopeThe necessary changes in the rate of duty or VAT have been calculated on the basis of figures published in table 5.8 of the 1992 "Autumn Statement. "The estimated impact effects are as follows, assuming the full tax increases are passed on to consumers in the form of higher prices:
Per cent. change in duty RPI impact effect per cent. Tobacco 18.9 0.45 Beer 49.3 0.40 Wine and Spirits 73.2 0.93 Petrol 11.4 0.23 VED 31.0 0.26 VAT, percentage point increase 0.6 0.27 Some of the additional tax burden may fall on businesses, in particular any increase in petrol duty. If businesses pass this cost on to consumers in the form of higher prices, the long run effect on the RPI may be greater than indicated.