§ 56. Sir G. Nabarroasked the Chancellor of the Exchequer what is his estimate of the yield of Purchase Tax in 1968–69; how much it is estimated will be derived from the 12½ per cent. rate; how much from the 20 per cent. rate; how much from the 33⅓ per cent. rate; and how much from the 50 per cent. rate.
§ Mr. Diamond£887 million made up as follows:
Estimated yield in 1968–69 Rate £ million 12½ per cent 232 20 per cent 89 33⅓ per cent 458 50 per cent 108 Total 887
§ 57. Sir G. Nabarroasked the Chancellor of the Exchequer what estimate he has made of the effects on the present yield from Purchase Tax on all articles of the substitution for the present rates of tax of a uniform rate of 16⅖ per cent. on all articles, of a uniform rate of 25 per cent. and of a uniform rate of 33⅓ per cent. respectively.
§ Mr. DiamondEstimates of the effect on the present yield are very uncertain, but the following figures indicate the order of magnitude of the change:
Rate of tax Effect on yield per annum £ million 16⅔ per cent —200 25 per cent. +100 33⅓ per cent +400