To ask the Chancellor of the Exchequer if he will estimate the amount of tax forgone due to the zero rating of value added tax on (a) food, (b) children's clothing, (c) new housing and (d) books and newspapers.
The extra revenue yield, in a full year, from applying the standard rate of VAT to the items listed is estimated approximately at:
| £ million | |
| a. Food | 5,100 |
| b. Children's clothing | 600 |
| c. New Housing | 1,600 |
| d. Books and newspapers | 700 |
| Total | 8,000 |
To ask the Chancellor of the Exchequer if he will take steps to harmonise the arrangements for payment of value added tax on duty-free fuel by British fishing vessels to bring them into line with existing arrangements for Belgian, Dutch and French fishing.
[holding answer 2 July 1990]: The Government are aware of the difficulties for British fishing vessels and other maritime interests, caused by the European Court of Justice's ruling on some of the United Kingdom's VAT zero rates. They are considering whether and how any changes to the present arrangements should be made.
To ask the Chancellor of the Exchequer if he will estimate the likely increase in the retail prices index if value added tax at standard rate was applied to (a) food, (b) children's clothing, (c) new housing and (d) books and newspapers.
Following is the information:
Percentage increase in the Retail Prices Index Per cent.
| |
a. Food | 2.0 |
b· Children's clothing | 0·2 |
c· New housing | 1n·a· |
d· Books and newspapers | 0·2 |
1 The effects on the RPI of applying VAT to new housing cannot be quantified precisely. The immediate impact would be very small. Over many years however it would become significant. | |