§ Mr. BarronTo ask the Chancellor of the Exchequer what is his policy on charging value added tax on(a) recombinant factor 8 and (b) plasma-derived factor 8; how much of each is (i) exported and (ii) imported annually; and what revenue accrues to the Exchequer as a result. [19565]
414W
§ Mr. Heathcoat-AmoryHuman blood and substances derived from it, including plasma-derived factor 8, are exempt from VAT under items 6 and 7 of group 7 of schedule 9 to the Value Added Tax Act 1994. Recombinant factor 8, being synthetic and not derived from human blood, does not fall within the exemption. Its taxable treatment is the same as that of other drugs and therapeutic products, both here and in other EC member states in accordance with the sixth VAT directive of 1977.
There are no official import or export data relating to these specific products.
The application of the standard rate of VAT to recombinant factor 8 is estimated to raise approximately £1.2 million per year.