HC Deb 30 March 1961 vol 637 cc148-9W
Mr. Nabarro

asked the Chancellor of the Exchequer what portion per centum of total national revenue is being raised from Purchase Tax in the current financial year 1960–61; how that figure compares with that in the immediate preceding year; and to what extent the reduction of Purchase Tax rates respectively in the Finance Acts, 1957 and 1958, caused a commensurate reduction in the total revenue yield of Purchase Tax, in the year immediately following such reductions.

Mr. Barber

The Budget estimate of ³535 million for receipts of Purchase Tax in 1960–61 represented 8.9 per cent of the total estimated revenue. This was also the proportion of total revenue in 1959–60 represented by receipts of Purchase Tax. The Budget estimates of the net cost to the Exchequer of the 1957 and 1958 Purchase Tax changes, for the financial year in which they were introduced, were ³18 million and ³30 million, respectively. It is not possible to say to what extent actual yields were affected by these changes to the exclusion of other factors.

Mr. Nabarro

asked the Chancellor of the Exchequer by how much per centum total Purchase Tax revenue is expected to increase during 1960–61 compared with 1959–60.

Mr. Barber

About 6¾ per cent. on the basis of the 1960 Budget estimate.