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Value Added Tax

Volume 890: debated on Monday 14 April 1975

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asked the Chancellor of the Exchequer what would be the approximate increase in revenue resulting from (a) an increase in VAT to 18 per cent. on all goods subject to purchase tax in the last year purchase tax was levied, (b) an increase in VAT to 18 per cent. on all goods subject to purchase tax in the last year purchase tax was levied, other than clothing and household goods, food and cars, and (c) an increase in VAT to 18 per cent. on luxury goods only, the categories of goods being as defined in Table 360 of the 1974 Annual Abstract of Statistics.

The increases in revenue in a full year would probably be of the order of £850 million, £275 million and £100 million, respectively.

asked the Chancellor of the Exchequer whether he will seek to exempt from value added tax the domestic deliveries of coal by the home coal service which is organised by the National Union of Mineworkers.

asked the Chancellor of the Exchequer why VAT is charged on the collection of cesspool refuse but is not charged on the collection of dustbin refuse.

Both services are properly chargeable with value added tax if supplied by registered traders. Such services supplied by local authorities are also subject to tax if a charge is made.

asked the Chancellor of the Exchequer what is his estimate of the number of man-hours required to administer VAT by companies with annual turnovers of £10,000, £20,000, £50,000 and £100,000.

I regret that I cannot usefully make such an estimate. The time spent by businesses on compliance with VAT requirements no doubt varies very widely according to the nature and organisation of the business, rather than simply according to turnover.