§ 50. Sir G. Nabarroasked the Chancellor of the Exchequer what he estimates will be the yield in 1967–68 of the 11 per cent., of the 16½ per cent., and the 27½ per cent. rates of Purchase Tax, respectively, following consolidation of the regulator into these rates, and having regard to economic circumstances and domestic consumption assumed during the current year; and what will be the yield from motor cars during 1967–68 at the consolidated Purchase Tax rate proposed of 27½ per cent.
§ Mr. MacDermotThe Budget Estimate for purchase tax receipts in 1967–68 is £735 million. The division by rates of tax is:
- 11 per cent. rate—£210 million;
- 16½ per cent. rate—£75 million;
- 27½ per cent rate—£450 million.
Motor cars are expected to yield about £148 million out of the total from the 27½, per cent. rate.