§ 40. Mr. Houghton
asked the Chancellor of the Exchequer what is the amount collected for the year to 5th April, 1949, in interest paid on unpaid Income Tax, Profits Tax, and Excess Profits Tax, under the provisions of Section 8 of the Finance Act (No. 2) 1947; and whether he can make any estimate of the administrative costs of levying this interest charge.
§ The Chancellor of the Exchequer (Sir Stafford Cripps)
The interest collected last year on arrears of Income Tax, Profits Tax and Excess Profits Tax amounted to about £60,000 and on arrears of Surtax to £20,000, making a total of £80,000. The levying of interest 1957 is part only of the process of assessment and collection and it is not possible to make any estimate of the administrative cost. I should add that the purpose of the interest charge is to encourage people to pay promptly and to the extent that it does so the amount of interest collected must be small.