§ Mr. Maurice Macmillan
asked the Chancellor of the Exchequer if he will list the revenue and administration costs 795W of each of the taxes in the United Kingdom, and the estimated total cost to taxpayers of complying with payment of each of these taxes.
§ Mr. Robert Sheldon,
pursuant to his reply [Official Report, 6th July 1978; Vol. 953, c. 298], gave the following information:
Net receipts from Inland Revenue taxes and duties are shown in table 5 of the 120th report of the Commissioners of Inland Revenue (Cmnd. 7092). For the financial year 1976–77, the cost of collecting stamp duties was 1.54 per cent, of the yield; of estate duty and capital transfer tax together 357 per cent.; and of taxes on income, profits and capital gains 1.92 per cent. It is not possible to break down the third category further as much of the work of administering these taxes is carried out in connection with more than one tax.
The revenue and administrative costs of the main Customs and Excise taxes and duties in 1976–77 are as follows:
Revenue £ Estimated administrative costs VAT and car tax Value added tax 3,770 80 Car tax 218 0.6 Revenue Duties Hydrocarbon oil 2,067 4.2 Alcoholic liquor 1,946 15
(a) (b) [...] Retired on 31.3.78 Retired on 1.4.78 Retired pay on award Terminal Grant Retired pay from 1.4.78 (increased by 1977 Pensions Increase Measure) Retired Pay on Award Terminal Grant £ £ £ £ £ Major … 3,210 9,630 3,605 4,220 12,660 Lieutenant-colonel … 3,870 11,610 4,346 5,091 15,273 Colonel … 4,481 13,443 5,032 6,062 18,186
The gap between the rates of retired pay for the two retirement dates is likely to be narrowed in December 1978 as a result of the December 1978 pensions increase. For those who retired on 1st April 1978, the increase is expected to be approximately two-thirds of that payable to those who retired on 31st March 1978.796W
Tobacco 1,875 2.6 Betting and gaming 284 3.7 Matches and mechanical lighters 7.9 0.1 Import Duties etc. Import duties 676 31 Agricultural levies 53 1.6
In addition, Customs and Excise spent £38 million on preventive and fraud work related to the whole range of the Departments' activities.
The revenue from vehicle excise duty in 1976–77 was £816 million; the administrative costs of VED in the same period are estimated to have been £30 million.
No official estimates exist of the costs to taxpayers of complying with payment of each of these taxes; but every effort is made to keep compliance costs as low as possible.