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Mr. Burstow
To ask the Secretary of State for Health what estimate his Department has made of the cost to NHS trusts of the removal of VAT zero-rating on continence products in (a) 1997–98 and (b) 1998–99. [31866]
Mr. Boateng
The National Health Service is funded on the basis that Value Added Tax is payable on healthcare. The re-imposition of VAT on continence products is estimated to amount to £2.25 million in 1997–98 and £9 million in 1998–99.