§ Mr. Rooker
asked the Chancellor of the Exchequer (1) if he will list for each tax and excise duty the estimated cost 795W of collection as a proportion of the total revenue collected; and if he will make a statement showing how this information is used as a management tool by the Inland Revenue, and Her Majesty's Government's Customs and Excise;
(2) if the cost of collection of any tax or duty forms part of the management reporting systems of the Inland Revenue and Her Majesty's Customs and Excise; and if he will make a statement.
§ Mr. Norman Lamont
The cost yield ratios for 1985–86 were as follows:
per cent. Inland Revenue Income tax —employment income 1.60 —other income 5.19 Corporation tax 0.58 Capital gains tax 1.70 Capital transfer tax and estate duty 2.32 Stamp duties 0.59 Petroleum revenue tax/supplementary petroleum duty 0.018 Customs and Excise VAT 1.04 Car tax 0.22 Hydrocarbon oil 0.13 Alcoholic drink 0.69 Tobacco products 0.08 Betting and gaming 0.87 Matches/mechanical lighters 1.12 Customs duties and associated work1 11.61 1 Customs duties are not normally classified as taxes or excise duties but they are included here for completeness. The cost of their collection includes a substantial amount for non-revenue-raising work such as the prevention of drug smuggling and the enforcement of other prohibitions and restrictions.
Movements in the cost yield ratios of individual taxes and duties are monitored closely and are published in the annual public expenditure White Paper and in the report of the Board of Inland Revenue and the report of the Board of Customs and Excise. Cost yield ratios are only one of a number of factors that are taken into account by management both in advising Ministers about tax policy and in assessing administrative efficiency.