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Select Committee on Finance and General Affairs debate -
Thursday, 25 Apr 1996

SECTION 81.

Question proposed: "That section 81 stand part of the Bill."

On farmers VAT, which has increased from 2.5 per cent to 2.8 per cent, what is the cost to the Exchequer of that measure?

The present scheme costs approximately £75 million.

It has been adjusted by various Ministers down through the years. Could the Minister explain the logic behind going from 2.5 per cent to 2.8 per cent? There must be a reason for the increase.

I suggest that we go into private session to get a technical explanation.

Question put and agreed to.
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