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Tax Burden

Mr. Malcolm Bruce: To ask the Chancellor of the Exchequer, pursuant to his answers of 5 May 1998, Official Report, columns 331-34, on taxation, when he intends to publish an updated version of estimates of the tax burden. [58329]

Dawn Primarolo: I refer the hon. Gentleman to table 2.8 of Inland Revenue Statistics 1998.

Withholding Tax

Mr. Gibb: To ask the Chancellor of the Exchequer if he will make it his policy to veto the EU proposal regarding the introduction of a 20 per cent. withholding tax on interest payments paid to non-UK resident recipients residing in the EU. [58792]

Dawn Primarolo: The Government are in favour of effective international action against tax evasion, and we are taking an active part in discussions on the draft

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Directive. We will not agree to any course of action which would seriously damage the UK and other European financial markets.

Growth Forecast

Mr. Gibb: To ask the Chancellor of the Exchequer (1) if he will set out the basis for revising the growth forecast for 2001-02; [58795]

Ms Hewitt: Full details of the Treasury's new forecasts were set out in the Pre-Budget Report, published on 3 November.

Mr. Gibb: To ask the Chancellor of the Exchequer if he will assess the effect of his revised growth forecast on unemployment in 1999. [58796]

Ms Hewitt: The economy continues to expand and create new jobs. Employment has risen by 400,000 since the election and unemployment has fallen by 280,000. With regard to future employment prospects, the Government have been putting in place a wide range of measures to address structural problems in the labour market. The key is to ensure that people are well trained and able to adapt to the changing circumstances of a modern dynamic economy.

Resource Accounts

Mr. Gibb: To ask the Chancellor of the Exchequer when the dry-run resource account for 1998-99 will be published. [58797]

Ms Hewitt: The Government's intention is to implement Resource Accounting and Budgeting fully from 2001-02. In advance of full implementation, departments are producing dry-run resource accounts over the next three years when, subject to Parliamentary approval, resource accounts will replace Appropriation Accounts.

For 1998-99, all departments will produce dry-run resource accounts which will be subject to a dry-run audit by the National Audit Office. There is no intention to publish these formally, although they may be made available to departmental Select Committees.

Subject to the result of the NAO dry-run audit, accounts directions will be issued to departments in respect of the financial year 1999-2000. Two further full sets of dry-run resource accounts will then be produced by all departments in respect of the financial years 1999-2000 and 2000-01. These dry-run accounts will be published, along with a report by the Controller and Auditor General, following audit by the NAO.

Petrol Smuggling

Mr. Hoyle: To ask the Chancellor of the Exchequer if he will provide estimates of the cost to the Exchequer in lost revenue of petrol smuggling from the continent for the last year for which figures are available. [58519]

Ms Hewitt: HM Customs and Excise have no estimates for the revenue lost to the Exchequer through this activity.

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Mr. Hoyle: To ask the Chancellor of the Exchequer what percentage of revenue was lost in (a) Northern Ireland, (b) Scotland and (c) North West Region through petrol smuggling in the last year for which figures are available. [58520]

Ms Hewitt: HM Customs and Excise have no estimates for the revenue lost to the Exchequer through such activity in these regions.

Imported Motor Vehicles

Mr. Hoyle: To ask the Chancellor of the Exchequer what was the cost to the Exchequer in lost revenue from the parallel import of motor vehicles from Ireland to the UK in the last year for which figures are available. [58521]

Ms Hewitt: No figures on the revenue loss from the parallel import of motor vehicles from Ireland to the UK are available.

VAT (Hospitals)

Mr. Hoyle: To ask the Chancellor of the Exchequer if he will make a statement on the rules governing reclamation of VAT by hospitals. [58522]

Dawn Primarolo: The business activities of hospitals are governed by the same VAT rules as those for other organisations. Private care provided by all hospitals is exempt from VAT, which means that hospitals cannot recover any VAT associated with those supplies. However, when providing free health care, the funding NHS hospitals receive from the Department of Health takes account of VAT. In addition, when NHS Trusts contract out services to the private sector, the tax they incur can in most instances be reclaimed.

Income Tax

Mr. Jack: To ask the Chancellor of the Exchequer if all lower rate and higher rate tax payers will receive the full value of his proposed 10 pence starting rate of tax. [58600]

Dawn Primarolo: The Government will introduce a 10 pence starting rate of income tax when it is economically right to do so. The new rate will be incorporated in the income tax system in the way that best meets the Government's objectives of improving work incentives and promoting a fair and efficient tax system.

Taxation (Estimates)

Mr. Jack: To ask the Chancellor of the Exchequer in respect of which taxes Treasury ministers receive estimates from the Inland Revenue of monthly receipts. [58601]

Dawn Primarolo: I refer the right hon. Member to the answer I gave him on 6 June 1997, Official Report, column 277.

Vehicle Excise Duty

Mr. Jenkin: To ask the Chancellor of the Exchequer if he will list the current rates of vehicle excise duty, or equivalent, for (i) a 1600cc engined car, (ii) a goods vehicle with a gross or train weight of between 3,500 and 7,500 kg, (iii) a three axle tractor unit with a two or more

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axle semi-trailer with a weight of 38,000 kg and (iv) a single-deck bus with capacity for 50 passengers in each of the countries of the EU. [58706]

Ms Hewitt: The current rates of UK Vehicle Excise Duty for the vehicles quoted are as follows:






Vehicle Excise Duty in other member states is based on a variety of different factors such as types of fuel, power output, weight and noise. It is, thus, impossible to make direct comparisons across the EU member states.

Mr. Jenkin: To ask the Chancellor of the Exchequer what he estimates the yield will be in 1998-99 from (i) vehicle excise duty, (ii) fuel duty on petrol and diesel and (iii) VAT on sales of petrol and diesel. [58704]

Ms Hewitt: Table B10 of the November 1998 Pre-Budget Report forecasts that the yield in 1998-99 from vehicle excise duty will be £4.7bn and the yield from fuel duty on petrol and diesel will be £21.8bn. These figures do not include VAT receipts, which are not disaggregated to sales of petrol and diesel.

Working Families Tax Credit

Mr. Webb: To ask the Chancellor of the Exchequer what rules will govern the decision as to which employer delivers the working families tax credit where an employee works for more than one employer. [58978]

Dawn Primarolo: This is one of the issues currently under discussion between Inland Revenue officials and employer representatives and decisions will be announced in due course.

Mr. Webb: To ask the Chancellor of the Exchequer what measures were taken to prevent fraud from collusion between employers and employees in designing the working families tax credit. [58977]

Dawn Primarolo: The Government recognise that most employers carry out their obligations honestly and properly. Working Families Tax Credit will build on Family Credit, but it will be administered by the Inland Revenue. The Inland Revenue has considerable experience of checking the operation of PAYE. It will use its expertise to detect and prevent collusive fraud in Working Families Tax Credit.

Mr. Webb: To ask the Chancellor of the Exchequer what assessment he has made of the effect the operation of the working families tax credit will have on the cashflow of small businesses with low-paid employees. [58974]

Dawn Primarolo: Inland Revenue officials have been consulting employer representatives, including representatives of small businesses. The effect on cash flow is one of the issues they are examining.

Smaller businesses will benefit from the proposals that, while employer payments of WFTC will normally be set off against PAYE tax and NICs deducted, employers will

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be able to apply to the Inland Revenue for funding if they have insufficient PAYE tax and NICs out of which to pay the tax credit.


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