§ Lord Cocks of Hartcliffe
asked Her Majesty's Government:
What proportion of (i) direct tax and (ii) indirect tax, is paid by individuals with incomes below 85 per cent, of national average earnings.
The Paymaster General (The Earl of Caithness)
Until the introduction of independent taxation in April, income tax assessments for married couples are based on their joint income, and information is not available to answer this question in terms of individuals. It is estimated that in 1989–90 about 53 per cent, of all single people or married couples liable to income tax have incomes below 85 per cent, of average male earnings, and that they account for 19 per cent, of income tax assessed. No information is available which would permit similar estimates to be made for other direct taxes or for indirect taxes.