asked the Minister for Finance the estimated amounts which are attributable to tax at the different rates of VAT for the years 1987 and 1988.
Written Answers. - VAT Statistics.
17.
The 1987 provisional outturn for VAT, broken down by tax rate, is as follows:
|
£m |
|
|
10 per cent |
323 |
|
25 per cent |
1,238 |
|
Other (including livestock rate and receipts in respect of rates in force in previous years) |
21 |
|
Total |
1,582 |
It is not the practice to supply details of the current year's estimates in disaggregated form. However, previous years' experience indicate that the 1988 yield at the different rates could be of the order of:
|
10 per cent rate |
20 per cent of yield |
|
25 per cent rate |
78 per cent of yield |
The new 5 per cent rate of electricity and miscellaneous other receipts will account for the balance of 2 per cent.
19.
asked the Minister for Finance the total amount of tax which it is estimated would accrue to the Exchequer if VAT were to be applied to food at (a) a 10 per cent rate (b) a 15 per cent rate and (c) at a 25 per cent rate; and if he will make a statement on the issues of policy which arise in relation to the extension of VAT to food.
It is assumed that the Deputy is referring to zero-rated food for human consumption. If VAT were applied at a positive rate to this food the full year yield to the Exchequer would be as follows: (a) £203 million at a 10 per cent rate; (b) £304 million at a 15 per cent rate; and (c) £507 million at a 25 per cent rate.
My budget proposals for 1988 are known already. Consequently, no change to the present zero rating of VAT on food is an immediate prospect. The Deputy will be aware that the positive charging of all zero-rated goods is part of the proposals which are at present under consideration in the EC for the harmonisation of indirect taxes. The ultimate approach to this and other aspects of VAT and excise duties will be influenced by developments in regard to the EC proposals.