§ Sir R. Russell
asked the Chancellor of the Exchequer what is the estimated total amount of Selective Employment Tax which will be collected from nationalised industries, local authorities, and other statutory authorities and then refunded, in 1966–67, and the estimated cost of collecting and refunding it.
§ Mr. Diamond
Public bodies listed in Schedule 1 of the Selective Employment Payments Bill are forecast to pay some £65 million in Selective Employment Tax in 1966–67; Local Authorities as described in clause 4 of the Bill will pay some £50 million. Public Bodies will be repaid the net amount due (i.e. allowing for no refunds in respect of some activities and premiums for others); arrangements have yet to be finalised, but the great bulk of the above sum will be repaid within the financial year. Local Authorities will receive monthly refunds of tax paid except in respect of their direct labour force engaged on new construction which is expected to account for £1 million. The additional cost to the Exchequer of collection and repayment is expected to be very small.