§ Mr. Ashdownasked the Chancellor of the Exchequer if he will give the estimated revenue that would be obtained by increasing the basic rate of income tax by 1p; and if he will give the estimated revenue that would be obtained by increasing the rate of value added tax by 1 per cent.
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§ Mr. MooreThe direct revenue yield from increasing the basic rate of income tax by 1p is estimated to be about £1,200 million in a full year at 1986–87 income levels. An increase of 1 percentage point in the standard rate of VAT would yield net additional revenue of about £925 million at 1986–87 prices.