§ Mr. Raisonasked the Chancellor of the Exchequer (1) what percentage of gross domestic product was taken by tax and national insurance contributions in 1973, 1974 and 1976 ; and whether he
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TAXES Including social security payments Excluding social security payments Percentage of GNP at factor cost 1970 1973 1975 1970 1973 1975 Australia* … 28.8 29.7 … 28.8 29.7 … Belgium … 38.7 40.5 44.7 27.2 28. 30.9 Canada … 37.2 37.2 37.7 33.9 33.9 33.6 France … 40.7 40.6 41.3 25.9 25.2 24.6 Germany … 38.6 42.5 41.9 27.2 29.2 27.8 Italy … 33.4 32.9 34.1 20.5 19.2 18.8 Japan … 21.6 22.6 22.4 17.6 18.5 17.0 Netherlands … 44.4 49.8 53.1 28.2 30.3 32.1 Sweden … 45.9 49.0 52.1 37.3 39.2 41.9 United States … 32.9 33.4 32.6 26.4 25.8 24.7 United Kingdom† … 43.4 37.2 40.8 37.4 31.1 33.5 *Fiscal years beginning on 1st July of year indicated. †Consistent with data given inNational Income and Expenditure1966–76. will estimate the proportion in the current year ;
(2) whether he will publish a table showing the percentage of gross domestic product or gross national product both including and excluding national insurance contributions in 1970, 1973 and 1976 in each major Organisation for Economic Co-operation and Development country.
§ Mr. Denzil Davies:The table below shows the percentage of gross national product at factor cost represented by taxes, including and excluding social security contributions, in the OECD countries. Since data in respect of 1976 are not yet available for countries other than the United Kingdom, figures for 1975 have been included.
In the United Kingdom, taxes including social security contributions represented 39.8 per cent. of GNP in 1974 and 40.5 per cent. in 1976. Excluding social security contributions, the percentages were 33.1 and 32.9 respectively. An estimate for the current year is not available.
Although every effort has been made to ensure comparability between the figures for each country, it should be borne in mind that there is no single, precise, definition of the term "taxes and social security contributions ". The figures of relative tax levels should be regarded as broadly indicative of the degree of Government involvement in the provision of services, the redistribution of income and the pursuit of other economic policy objectives in each country.
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§ Mr. Raisonasked the Chancellor of the Exchequer if he will state, or estimate, for 1973–74, 1976–77 and 1977–78, the proportion of gross domestic product at factor costs and market prices absorbed by (a) income tax (including child benefit adjustments), (b) income tax plus indirect taxes and excise duties, (c) income tax plus indirect taxes and excise duties plus employees' social security contributions, and (d) Government revenue as a whole.
As a percentage of GDP At factor cost At market prices 1973–74 1976–77 1977–78 1973–74 1976–77 1977–78 Income tax* 11 15 12½ 91½ 13 11 Plus indirect taxes† 23 26 25 20 23½ 22½ Plus employees' contributions 26 29½ 28½ 23 26 25 Total government revenue from taxation‡ 38 41 40½ 33½ 36½ 35½ Source: National Accounts data. *Net of cost of family allowances, child interim benefit and child benefit. This is not the usual procedure as strictly speaking the cost of family allowances and child benefit forms part of public expenditure. †Indirect taxes comprise all Customs and Excise duties, vehicle excise duty, stamp duty and SET or National Insurance surcharge where applicable. ‡Government revenue as a whole is taken to be taxation revenue and consists of company taxes, capital taxes, local authority rates and employers' contributions in addition to the taxes already specified. The cost of child benefit is again netted out.