§ 32. Mr. John Smithasked the Chancellor of the Exchequer how much money has so far been collected in Capital Gains Tax; and what has been the cost of assessing and collecting it.
§ Mr. DiamondAbout £200,000 so far. The cost of assessing and collecting the tax cannot be segregated from the cost of administering other taxes.
§ Mr. SmithDoes not this mean that we should simplify this very complicated tax, thus freeing many able people, both inside the Revenue and outside, for more productive work?
§ Mr. DiamondI am sure that the hon. Gentleman will recollect that we have had many debates on the tax from which it has emerged that proposals are called simplification but really refer to abolition.
§ Mr. DoughtyDoes not the Chief Secretary's reply confirm that this tax is not worth the trouble taken in collecting it in view of the great damage it does in this country and other countries?
§ Mr. DiamondNo, Sir. It is too early to come to such a conclusion. The Budget estimate was for £5 million this year. There is no reason at present to alter that estimate.