§ Mr. BoswellTo ask the Chancellor of the Exchequer what is the current starting rate of income tax and the width of the lowest tax band in each member state of the European Union. [3452]
§ Dawn PrimaroloThe information is given in the table. It is based on OECD information for 1995 or 1995–96 tax years, the latest for which comprehensive information is available. The income figures relate to earned income of single taxpayers and have been converted to £ sterling using 1995 OECD purchasing power parity figures.
344W
Starting rate of central government income tax % Income band for starting rate £ Tax threshold for single person £ Austria 10 0–2,380 6,980 Belgium1 25 0–4,500 4,830 Denmark2 13 2,300–10,160 2,780 Finland3 7 4,680–6,470 5,140 France 12 2,290–5,000 3,910 Germany4 19 1,820–2,640 3,800 Greece 5 3,220–8,050 3,830 Ireland 27 2,580–9,170 3,810 Italy 10 0–2,860 3,460 Luxembourg 10 4,100–5,890 6,010 Netherlands 6.15 1,960–14,290 1,980 Portugal 15 0–5,330 3,340 Spain 20 2,220–3,320 4,630 Sweden5 see note 0–13,700 0
Starting rate of central government income tax % Income band for starting rate £ Tax threshold for single person £ United Kingdom 20 3,525–6,725 3,525 Notes: 1Central income tax subject to surcharge of 3 per cent. in 1995. Local income taxes, averaging 7 per cent. of central tax (before surcharge) are also charged. 2Local income tax at average rate of 30.6 per cent. is charged in addition to 13 per cent. central rate. 3Local and church taxes at average rate of 18.8 per cent. are also charged and operate at a lower tax threshold than central tax. 4Excludes solidarity surcharge (7.5 per cent. of tax) and church tax (9 per cent. of tax). 5All taxpayers with any employment income pay tax at a flat rate of about £7 a year. Apart from this, central government tax is only charged on incomes above £13,700 at a rate of 25 per cent. However, local income tax, at an average rate of 31.5 per cent., is charged on all incomes above £610.