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Value Added Tax

Volume 975: debated on Monday 10 December 1979

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29.

asked the Chancellor of the Exchequer if his Department has estimated the industrial effect of any decision to repay value added tax quarterly to those traders who currently opt to receive repayment monthly.

The effect on industry would be carefully considered before any such decision were taken.

asked the Chancellor of the Exchequer what is his estimate of the annual amount of value added tax payments which are illegally evaded; and to what extent he considers that the amount of evasion is related to the rate at which value added tax is levied.

The only relevant estimate available is one made some years ago following a special exercise by Customs and Excise. This suggested that the net loss to the Exchequer through under-declaration was around 1 per cent. to 1½ per cent. of the total yield. Changes in the rates at which any tax is levied are likely to have some effect on the level of evasion.

asked the Chancellor of the Exchequer what is his estimate for the year 1979–80 of the total number of repayment traders who have opted for and are currently receiving monthly repayments of value added tax from Her Majesty's Customs and Excise, broken down by trading classifications as in the answer to the hon. Member for Gosport, dated 23 November 1979; and what is the estimated amount of value added tax that will be repaid to each such group during 1979–80.