Value Added Tax (Hansard, 12 June 1995)

§ Mr. Malcolm Bruce
To ask the Chancellor of the Exchequer what would be the cost to the Exchequer of reducing the rate of value-added tax on energy-saving materials from 17.5 per cent. to 8 per cent. [28148]

§ Mr. Heathcoat-Amory
There is no definitive list of energy-saving materials in existence; therefore it is impossible to quantify the cost to the Exchequer of taking such action.

§ Mr. Malcolm Bruce
To ask the Chancellor of the Exchequer what would be the annual cost to the Exchequer of reducing the top rate of value-added tax from 17.5 per cent. to 16.5 per cent. [28149]

§ Mr. Heathcoat-Amory
The estimated cost in 1995–96, published by Her Majesty's Treasury in the "Tax Ready Reckoner and Tax Reliefs", was £2.6 billion. A new estimate will be published this July.

§ Mr. Malcolm Bruce
To ask the Chancellor of the Exchequer what is his estimate of the revenue impact on the Government of reducing the rate of value added tax on domestic fuel from 8 per cent. to 5 per cent. [28141]

§ Mr. Heathcoat-Amory
The estimated loss in revenue in 1995–96 from a three percentage point reduction in VAT on domestic fuel is about £500 million. It will be revised this summer. The figure is based on the costings methodology in the "Financial Statement and Budget Report".