To ask the Chancellor of the Exchequer what estimate he has made of the level of UK carousel VAT fraud in (a) 2006-07 and (b) the most recent two previous years for which data are available. (119199)

HMRC published annual estimates of the level of MTIC fraud alongside PBR 2006 in “Measuring Indirect Tax Losses—2006”, which is available from the House of Commons Library or from the HMRC website.

No estimate has yet been produced for 2006-07, though operational indicators suggest that MTIC fraud activity has fallen sharply during the year.