§ Mr. CorbettTo ask the Chancellor of the Exchequer what percentage of the total amount raised from value added tax is paid directly to the European Commission; how much this raises at the current rate; and what the yield to the Commission was in each financial year since the introduction of VAT. [34695]
§ Dawn Primarolo[holding answer 16 March 1998]: VAT contributions to the European Community are assessed from VAT bases calculated in a common manner across all member states. A uniform Community rate is applied to the VAT bases to arrive at the actual contributions. The Community rate for 1997 was a maximum of 1.16 per cent., but the actual rate paid by the UK was 0.52 per cent.allowing for the abatement to offset the low level of UK receipts from the European Union's General Budget.
646WMember states did not commence paying VAT based contributions until 1979. Since then, the UK has paid the following amounts during each calendar year:
Year £ 1979 843,683,425 1980 776,155,832 1981 1,060,209,936 1982 1,554,368,023 1983 1,668,927,244 1984 1,665,401,210 1985 2,089,417,074 1986 1,743,046,245 1987 2,277,429,915 1988 1,265,213,455 1989 2,243,863,837 1990 2,919,974,035 1991 770,987,557 1992 2,183,357,515 1993 1,953,652,009 1994 1,316,266,329 1995 3,637,792,072 1996 2,059,438,539 19971 1,664,864,875 1The 1997 accounts are finalised in December 1998, so the contribution may be adjusted.