§ Mrs. Ann Taylorasked the Chancellor of the Exchequer if he will give details of local income or property taxes in each member country of the EEC, indicating where possible whether the taxes are regressive, proportional or progressive with respect to income.
§ Mr. Denzil DaviesThe following local income and property taxes are applicable in the nine member States.
Belgium
- i. The "taxe communale additionnelle" is a surcharge on the progressive national income tax of individuals. It is fixed annually by the local authorities.
- ii. the "centimes additionnels au précompte immobilier" is a surcharge on the proportional advance payment of national
1063 income tax on actual or imputed income from real property. It is fixed annually by the local authorities Denmark
- i. Local income taxes are levied on the total net income of individuals at a flat rate varying with the local authority. Personal reliefs are given in the form of rebates.
- ii. Property taxes are charged on rented and owner-occupied property according to its its capital value.
France
- i. The "taxe foncière sur les propriétés bâties et non bâties" is levied at a flat rate —varying with the local authority—on owners of land and buildings. It is charged on the rental value, less 50 per cent. for buildings or less 20 per cent. for land.
- ii. The "taxe d'habitation" is levied at a flat rate varying with the local authority on occupiers of private premises, on the rental value less 50 per cent. It is offset by certain personal reliefs.
Germany
- i. The "Gewerbesteuer" is charged on the net income of businesses at a flat rate for companies and a progressive rate for individuals, these rates varying with the local authority. The first DM 15,000 of an individual's net business income is exempt.
- ii. The "Grundsteuer" is charged on the market value of real property at flat rates varying with the local authority.
Irish Republic
Rates are levied on occupiers of property, broadly as in the United Kingdom.Italy
Local income taxes are levied at flat rates fixed annually by local authorities. In the case of individuals their employment income, some forms of investment income and, in part, business income are exempt.Luxembourg
- i. A trade tax is charged on the net income of businesses at flat rates varying with the local authority. The first Fcs 400,000 of the income of individuals and the first Fcs 200,000 of the income of companies are exempt.
- ii. A real property tax is charged on the market value of real property at flat rates varying with the local authority.
Netherlands
- i. The "Personele belasting" is levied on occupiers of property on the basis of the rental value plus the market value of furniture, at flat rates plus surcharges varying with the local authority. Rebates are given for dependants.
- ii. Owners of property are charged real property taxes at a flat rate on their average annual or imputed income from land or buildings. The rate may be increased by surcharges which vary with the local authority.
United Kingdom
Rates at levels imposed locally are levied on occupiers of property, generally on the 1064W basis of the rateable value. The amounts payable may be affected by the rates rebate scheme which takes into account income and family circumstances.