§ Mrs. Ann Taylor
asked the Chancellor of the Exchequer what would be his assessment of the average amount of indirect taxation paid in each of the past five years by a family on the national average wage, a family with an income of twice the average, a family with an income of five times the average and a family with an income of 10 times the average.755W
§ Mr. Denzil Davies
The information is not available in the form requested. Estimates of indirect taxes paid by households in the years 1971–73 are contained in an annual article on the "Incidence of Taxes and Social Service Benefits" inEconomic Trends, of November 1972,
Date Average earnings Range of original income containing average earnings Average original income in this range (1) Average indirect tax payments (2) Column (2) as a percentage of column (1) £ £ £ £ 1971 … 1,754 1,749–2,115 1,916 360 18.8 1972 … 1,980 1,749–2,115 1,940 390 20.1 1973 … 2,247 2,116–2,560 2,351 454 19.3
The size of the sample does not allow comparable figures to be given at multiples of average earnings. However, for this type of household, in 1973, the average original income of those with original income above £3,750 was £5,018, while indirect tax payments averaged £683, which is 13.6 per cent. of original income. It does not appear that there has been any great change in the distribution of indirect tax payments over time. Figures for 1974 will be available shortly in the February 1975 issue of Economic Trends.