asked the Minister for Finance the estimated revenue yield in a full year and the estimated increase in the consumer price index resulting from (1) 5p additional tax on a pint of beer; (2) 5p additional tax on a glass of spirits; (3) 20p additional tax on a bottle of wine; (4) 5p additional tax on a packet of 20 cigarettes; (5) 10p additional tax on a gallon of petrol; (6) 10p additional tax on a gallon of LPG; (7) 2p additional tax on all other oils; and (8) a 1 per cent increase in each rate of VAT, distinguishing the revenue and price effect for each such rate.
Written Answers. - Tax Yields.
317.
The information requested is as follows:
|
Increase |
Estimated yield to the Exchequer in a full year |
Estimated effect on the CPI |
|
£m |
% |
|
|
(1) 5p on a pint of beer |
32.4 |
0.504 |
|
(2) 5p on a glass of spirits |
10.7 |
0.120 |
|
(3) 20p on a bottle of wine |
3.1 |
0.028 |
|
(4) 5p on a packet of 20 cigarettes |
16.6 |
0.240 |
|
(5) 10p on a gallon of petrol |
29.3 |
0.264 |
|
(6) 10p on a gallon LPG |
6.3 |
0.008 |
|
(7) 2p on a gallon of all other oils |
14.8 |
0.023 |
|
(8) 1% increase in each rate of VAT |
||
|
0% (excl. building) |
24 |
0.380 |
|
3% (effective) |
13 |
— |
|
15% (excl. building) |
40 |
0.389 |
|
25% |
9 |
0.052 |
Notes:—
(i) The tax increase figures and the estimated yields consist of excise duty and consequential VAT.
(ii) The estimate for cigarettes is based on the assumption that the increase in the duty on cigarettes would be accompanied by proportionate increases on other tobacco products.
(iii) The estimate for LPG refers to both automotive and non-automotive LPG.
(iv) The estimate for other oils includes auto-diesel.
(v) The VAT figures leave out of account zero rated agricultural inputs (fertilisers, feeding stuffs, seed, fuel, animal medicines) and positive rated agricultural inputs (machinery, and repairs, services) to the extent that farmers are compensated by means of the 1.5 per cent flat-rate system for such inputs.
(vi) The special reduced VAT rate of 3 per cent applies to building services generally and to certain agricultural services. An increase in this rate of VAT has no direct effect on the CPT.