§ Mr. Barnettasked the Chancellor of the Exchequer (1) what approximate percentage of wages and salaries would be required to bring in the same net revenue as Selective Employment Tax, assuming existing levels of premium payments and neutral categories;
(2) what approximate percentage of wages and salaries would be required to bring in the same net revenue as Selective Employment Tax if premium categories changed to neutral and everything else remained the same;
(3) what approximate percentage of wages and salaries would be required to bring in the same net revenue as Selective Employment Tax if premium categories changed to neutral and everything else remained the same, with the exception that the first £5 of all incomes were excluded;
(4) what approximate percentage of wages and salaries would be required to bring in the same net revenue as Selective Employment Tax if premium categories changed to neutral and everything else remained the same, with the exception that the first £5 of all incomes and retirement pensioners and registered disabled were excluded.
§ Mr. DiamondApproximately 1.1 per cent. of gross annual wages and salaries in the first case and 1.8 per cent. in the second. The tax is not levied on income, so the net yield cannot be adjusted to exclude the first £5 of all incomes. With this proviso the figure in the final case is 1.7 per cent.