HC Deb 18 June 1968 vol 766 cc899-900
6. Mr. Rossi

asked the Minister of Housing and Local Government whether he will give a break-down of his estimate of the total cost of the assessment and collection of Betterment Levy in 1968–69.

Mr. MacDermot

I would refer the hon. Member to the Civil Estimates.

Mr. Rossi

Is the hon. and learned Gentleman not aware that the cost of collection over the ensuing year will be 5s. 6d. in the £ as against a revenue cost of 3.28d.? Does this not teach him some lesson or other?

Mr. MacDermot

I do not know what the hon. Gentleman means by a revenue cost of 3.28d. If he is referring to the cost of collection of Income Tax, that, of course, is a very cheap tax to collect. There are other taxes, many of them of great social importance, whose cost of collection is much greater. In any event, when a new tax is imposed the cost of collection is always high until it reaches its full effect. For the reasons which I have given earlier, it will be some years before that is the case in relation to the Betterment Levy.