VAT (Dried Fruit)

HC Deb 27 November 1998 vol 321 cc19-20W

Mr. Maude

To ask the Chancellor of the Exchequer if he will estimate the revenue forgone as a result of HM Customs and Excise's decision not to recover VAT wrongly charged to 1 January 1999 on sweetened dried fruit. [60876]

Dawn Primarolo

On 11 September 1998, HM Customs and Excise announced the outcome of a review which clarifies the VAT liability of sweetened dried fruit. It allows suppliers who received an earlier zero-rated ruling and whose products are now properly standard-rated to apply the liability change from 1 January 1999. The revenue is estimated to be negligible.

Mr. Maude

To ask the Chancellor of the Exchequer if he will estimate the revenue which would be raised if naturally sweetened dried fruit with no sweetening matter were subject to VAT at the standard rate. [60879]

Dawn Primarolo

Using information on sales of dried fruit, HM Customs and Excise estimate the annual revenue which would be raised to be about £15 million.