Written question asked by Gregory Campbell (Democratic Unionist Party) on Wednesday, 17 June 2020, in the House of Commons. It was due for an answer on Monday, 22 June 2020 (named day). It was answered by Jesse Norman (Conservative) on Monday, 22 June 2020 on behalf of the Treasury.

VAT: Tax Rates and Bands

Question: To ask the Chancellor of the Exchequer, if he will make an urgent assessment of the potential merits of reducing the VAT rate for on street retail shopping.

Answer

Raising over £130 billion in 2019/2020, VAT is an important source of revenue for the Exchequer and plays an important part in funding the Government’s spending priorities including hospitals, schools and defence.

A VAT reduction would therefore come at a considerable cost to the Exchequer.

In light of the COVID-19 outbreak, the Chancellor has announced a range of measures to help individuals and businesses through the crisis, including grants, loans and relief from business rates worth more than £300 billion.

The Government keeps all taxes under review.

Secondary information

Type: Written question
Reference: 60694
Session: 2019-21
Subjects: VAT Retail trade Tax rates and bands
Link: View this Written question on www.parliament.uk

VAT: Tax Rates and Bands

Secondary information

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