Direct Taxation

HC Deb 09 May 1973 vol 856 cc133-4W

Mr. Knox

asked the Chancellor of the Exchequer what is the maximum rate of direct taxation in the United Kingdom; and, from information available from international sources, how this compares with the equivalent rates in other European Economic Community countries.

Mr. Nott

The maximum rate of direct tax on personal income in the United Kingdom is 90 per cent. The maximum rates for other EEC countries are given below:

		Per cent.
Belgium	…	58
Denmark	…	67.7
		(Church tax ignored)
France	…	60
Germany	…	54.6
		(Church tax ignored)
		(see also note below)
Ireland	…	80
Italy	…	approx. 89
Luxembourg	…	57
Netherlands	…	71

Notes:

1. Social security contributions ignored.

2. An additional 10 per cent. surcharge on the basic rate is proposed for higher incomes from 1st July 1973 in Germany. This will bring the maximum rate to 59.9 per cent.