asked the Minister for Finance the estimated change in revenue in (a) 1985 and (b) a full year, of a 1 per cent, a 3 per cent and a 5 per cent reduction in each rate of VAT.
Written Answers. - Reduction of VAT.
261.
The estimated full year cost of a 1, 3 or 5 per cent reduction in respect of each existing VAT rate is given below. The cost in 1985 is not given as it would depend on the starting date of any reduction.
|
Existing rate (per cent) |
Cost of 1 per cent reduction |
Cost of 3 per cent reduction |
Cost of 5 per cent reduction |
|
£m |
£m |
£m |
|
|
5 |
18 |
54½ |
91 |
|
8 |
4½ |
14 |
23½ |
|
18 |
1½ |
4 |
7 |
|
23 |
42 |
126½ |
210½ |
|
35 |
9½ |
28 |
46½ |