§ Mrs. Doris Fisher
asked the Chancellor of the Exchequer what replies he has sent to women's groups which have written to him protesting against the imposition of VAT on sanitary protection.
§ Mr. Higgins
The replies have generally pointed out that VAT is in principle a broadly-based tax on consumption and therefore it will apply to some sectors of the economy which were not previously subject to indirect taxation. They stress the importance of bearing in mind that the tax burden was reduced on a wide range of goods when purchase tax
A B £p £p Earnings … 30.00 Family Allowance … 0.90 0.90 National Insurance (Flat rate) … -0.84 Unemployment Benefit … … 15.60 National Insurance (Graduated) … -1.07 Earnings related supplement … … 6.85 Tax … -2.85 Tax repayment … … 6.20 Net income … 26.14 29.55 Column A shows the net income when in employment at Week 40. Column B shows the net income when unemployed at Week 42.