§ Mr. Nabarroasked the Chancellor of the Exchequer, having regard to the particulars issued in the Ministry of Pensions and National Insurance leaflet, N.l. 116, November, 1960, entitled "Employer's Guide to Graduated National Insurance Contributions", all employers' and employees' graduated contributions being chargeable for relief to Income Tax and Surtax, in the case of the individual, and Income Tax and Profits Tax, in the case of the corporation, what aggregation of loss of revenue he estimates will occur on that account during the first full year; and what is his assessment of costs to the Revenue of such tax relief in each ensuing year to 1965.
§ Sir E. Boyle:The total tax relief for employees' National Insurance Contributions for 1961–62 is estimated at about £70 million. It is not possible to divide this figure between graduated and flat-rate contributions; and no estimate has been made for later years. As regards employers' contributions, in 154W general these rank as an ordinary business expense which it is inappropriate to regard as giving rise to a loss of revenue.