§ 48. Mr. STEPHEN
asked the Chancellor of the Exchequer the total amount of remission of taxation enjoyed by people in receipt of incomes over £500 per annum and of those with incomes under that figure, respectively, since he assumed office; and the reduction of indirect taxation for the same period?
§ Mr. McNEILL
It is not possible to allocate as between incomes over and under –500 the reduction in the basic rate of Income Tax from 4s. 6d. in the £ to 4s., costing £32 millions, or the increase of earned income allowance from 1/10th to ⅙th, the cost of which, including the special allowance to small taxpayers over 65 years of age, was £7½ millions. But while the reduction in the basic rate benefited all taxpayers, the benefit of the other remission was relatively greater to small taxpayers. The reduction of Super-tax in 1925 was offset by increases of Death Duties on the same class of taxpayer, calculated to yield about the same amount. Apart from this year's increase in Tobacco Duties, which is largely paid by the tobacco companies, the Changes in indirect taxation have been almost entirely in the direction of luxury taxes on silk, betting, wines and motors. The percentage of total tax revenue raised by indirect taxes in 1927, namely, 36£middot;56 per cent. is 3£middot;49 per cent higher than in 1924–25.