Written question asked by Neville Trotter (Conservative), in the House of Commons. It was due for an answer on Thursday, 13 February 1997. It was answered by Phillip Oppenheim (Conservative) on Thursday, 13 February 1997 on behalf of the Treasury.

Treasury

Question: What is his estimate of the additional tax which would be raised if VAT were imposed on (a) private education fees and (b) public health provision charges. - Inc ref to "Tax Ready Reckoner and Tax Reliefs" and figs (holding answer 10 February 1997).

Answer: Mr. Trotter: To ask the Chancellor of the Exchequer what is his estimate of the additional tax that would be raised if VAT were imposed on (a) private education fees and (b) public health provision charges. [14870] Mr. Oppenheim: [holding answer 10 February 1997]: Based on information in HM Treasury's "Tax Ready Reckoner and Tax Reliefs", the estimated revenue costs of (a) the VAT exemption of private education fees and (b) the zero rating of drugs and medicines on prescription are approximately £1,050 million and £750 million respectively in 1996-97. The estimates exclude the effect of behavioural changes and may tend to overestimate the extra revenue from withdrawing the exemption of zero rating.

Secondary information

Type: Written question
Reference: 14870; 290 c313W
Session: 1996-97
Subjects: Fees and charges Private education Prescriptions Schools VAT Tax yields
Contains statistics: Yes