VAT (Hansard, 13 February 1997)

§ 24. Mr. Connarty
To ask the Chancellor of the Exchequer what is his Department's current estimate of revenue from VAT for the current financial year. [14196]

§ Mr. Oppenheim
The most recent forecast of VAT receipts for 1996–97 published in the "Financial Statement and Budget Report" is £47.5 billion.

§ Mr. Hinchliffe
To ask the Chancellor of the Exchequer if he will make a statement on the scope of VAT. [14177]

§ Mr. Oppenheim
Value added tax in the UK applies to about 60 per cent. of consumer expenditure on goods and services.

§ Mr. Trotter
To ask the Chancellor of the Exchequer what is his estimate of the additional tax that would be raised if VAT were imposed on(a) private education fees and (b) public health provision charges. [14870]

§ Mr. Oppenheim
[holding answer 10 February 1997]: Based on information in HM Treasury's "Tax Ready Reckoner and Tax Reliefs", the estimated revenue costs of (a) the VAT exemption of private education fees and (b) the zero rating of drugs and medicines on prescription are approximately £1,050 million and £750 million respectively in 1996–97. The estimates exclude the effect of behavioural changes and may tend to overestimate the extra revenue from withdrawing the exemption of zero rating.