§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will list in order, with the most efficient at the top, all the various forms of taxation at present in use with the criteria for most efficient being the least expensive to collect.
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§ Mr. Peter ReesThe information in the following table relates to the financial year 1978–79, which is the latest year available. It does not, therefore, include the effect of changes made in the June Budget such as the unification of VAT at 15 per cent.—which would be expected to reduce substantially the cost of collection as a percentage of revenue.
Cost as a Percentage of revenue outturn1978–79* Tobacco products duties 0.1 Petroleum revenue tax 0.2 Car tax 0.2 Hydrocarbon oil duties 0.2 National insurance surcharge 0.7† Alcohol duties 0.8 Stamp duty and capital duty 1.1 Duties on matches and mechanical lighters 1.1 Betting and gaming duties 1.1 Agricultural levies 1.2 Value added tax 1.9 Income tax—including surtax—and corporation tax 2.0 Capital taxes 3.5 Customs duties 4.5 Vehicle excise duties 4.7§ * The cost figures are based on total expenditure, current and capital, incurred by the respective Departments and other departments on their behalf. † Estimated. ‡ Capital transfer tax—including estate duty—capital gains tax, and development land tax. § Total cost of administering vehicle registration and licensing systems.