asked the Minister for Finance the estimated change in revenue in a full year of (a) a 1 per cent, (b) a 3 per cent and (c) a 5 per cent reduction in the 23 per cent VAT rate.
Written Answers. - VAT Revenue.
48.
The cost in a full year, based on 1985 estimated figures, of a 1 per cent, 3 per cent and 5 per cent reduction in the 23 per cent rate as at present applied is £52 million, £156 million and £260 million respectively. The figures are arithmetically calculated, i.e., they do not take into account the effect on demand created by each reduction.