§ Mr. PaiceTo ask the Chancellor of the Exchequer what would be the effective tax rate for an individual on(a) 1.5, (b) two, (c) 2.5 and (d) three times average income if no income tax or national insurance contributions were payable in respect of incomes under £3,500, if the current top rate of national insurance contributions were payable on all income above £6,000 and at 2 per cent. on income between £3,501 and £6,000 and if income tax were payable at 18 per cent. for £3,501 to £13,500, at 28 per cent. for £13,501 to £22,000, at 40 per cent. for £22,001 to £32,000 and at 50 per cent. on all income earned above £32,001.
§ Mr. LilleyThe average percentage rates of tax and NIC would be:
Multiples of average earnings1 1.5 2 2.5 3 27.4 32.8 38.0 41.5 1 Average earnings are those for full time males working a full week at adult rates in all occupations in 1990–91; £303.80 per week; in line with the assumptions in paragraph 3.02 of the 1989 Autumn Statement.
§ Mr. RookerTo ask the Chancellor of the Exchequer what is the cost of collection as a proportion of revenue collected in respect of income tax; and if he will set out the figures for each of the past 10 years.
§ Mr. LilleyThe total cost of the administration and collection of income tax as a proportion of income tax receipts for the last 10 years for which final figures are available is as follows:
860W
Year Costs as percentage of receipts 1979–80 2.26 1980–81 2.40 1981–82 2.12
Year Costs as percentage of receipts 1982–83 2.17 1983–84 2.17 1984–85 2.25 1985–86 2.27 1986–87 2.29 1987–88 2.25 1988–89 2.24
§ Mr. DewarTo ask the Chancellor of the Exchequer what is the cost of collecting(a) income tax and (b) value added tax per pound collected in each year from 1986–87 to the most recent year for which figures are available.
§ Mr. LilleyThe cost of collecting income tax and value added tax per pound collected is estimated to have been:
pence Income tax VAT 1986–87 2.29 1.03 1987–88 2.25 1.02 1988–89 2.24 0.95