Balance of Payments

HC Deb 23 November 1971 vol 826 cc298-300W

33. Mr. Nicholas Edwards

asked the Chancellor of the Exchequer how much of the current account surplus on the balance of payments during the first half of 1971 is attributable to the net earnings on the invisible account.

Mr. Maurice Macmillan

I would refer my hon. Friend to Table B on page VII of the September issue of Economic Trends, which gives an "invisible balance" for the first two quarters of

				Purchase tax	Import duty
				Receipts	Change from previous year	Receipts	Change from previous year
Year ending 31st March—
1964	…	…	…	54.2	+21.8	35.5	+1.5
1965	…	…	…	58.7	+4.5	32.9	-2.6
1966	…	…	…	61.3	+2.6	32.7	-0.2
1967	…	…	…	69.0	+7.7	33.1	+0.4
1968	…	…	…	74.2	+5.2	35.1	+2.0
1969	…	…	…	93.5	+19.3	33.2	-1.9
1970	…	…	…	124.7	+31.2	33.3	+0.1
1971	…	…	…	145.1	+20.4	34.0	+0.7

Notes

1. The charge of purchase tax commenced on 8th May, 1962, in relation to confectionery, soft drinks and ice cream; it was extended on 27th May, 1969, to potato crisps, salted nuts and similar products and to prepared pet foods.

2. The import duty figures are estimated receipts of duty paid on imported goods classified in Chapters 1 to 4, 7 to 11 and 16 to 21 of the Customs and Excise Tariff—which are mainly human foodstuffs and cover most human foodstuffs.

30. Mr. Trew

asked the Chancellor of the Exchequer how many times, and on what dates between October 1964 and the present, the rates of purchase tax and the duties on tobacco, spirits, wine, beer and petrol, respectively, were increased; and what would now be the difference in yield of these taxes if they were levied at 1964 rates.

Mr. Patrick Jenkin

Since October, 1964, the rates of purchase tax, tobacco duty and beer duty have been increased three times; spirits duty four times, wine duty five, and road fuel duty six times. All thes increases took place before June, 1970.

If the current consumption of goods liable to these taxes were charged at the rates in force before October, 1964, the total revenue would be less by some £1,420 million.

Following are the details:

Dates of tax increases at July, 1966, etc.

Purchase tax—21.7.66, 20.3.68, 23.11.68.

Tobacco duty—7.4.65, 20.3.68, 23.11.68.

Spirits duty—7.4.65, 21.7.66, 20.3.68, 23.11.68

1971 of £311 million and to the revisions in the Press release of 11th November concerning visible trade in October.