§ Mr. Roperasked the Chancellor of the Exchequer what is the estimated yield 405W in 1978–79, based on the growth in earnings, prices, and output in the latest published Treasury forecast, or on other reasonable assumptions, of increasing, from April 1978, the duty on road fuel to produce, with VAT, an increase of (a) 2p in the price of a gallon of petrol, (b) 4p in the price of a gallon of petrol.
§ Mr. Robert SheldonIt is estimated that the revenue would be increased by about (a) £100 million and (b) £200 million in a full year. It would be contrary to practice to give estimates for 1978–79 before the Budget.
Tax threshold £ at 1976 prices Percentage 1970 1976 Increase (decrease) Australia … 666 3,200 380.5 Austria … 1,462 2,850 94.9 Belgium … 1,526 1,960 28.4 Canada … 2,343 3,710 58.3 Denmark … 1,376 2,170 57.7 Finland … 1,462 3,990 172.9 France … 2,171 3,520 62.1 Germany … 2,300 2,000 (13.0) Greece … 1,655 1,710 3.3 … Insufficient information available — Icelan … 2,021 1,540 (23.8) Ireland … 430 1,360 216.3 Italy … Japan— … National … 2,042 3,950 93.4 Local … 1,376 2,810 104.2 Luxembourg … 2,279 3,970 74.2 Netherlands … 2,472 2,540 2.7 New Zealand … 817 890 8.9 Norway— National … 3,720 3,720 Nil Local … 1,139 1,130 (0.8) Portugal … 925 920 (0.5) Spain … 1,397 935 (33.1) Sweden— National … 1,655 4,370 164.0 Local … 860 1,480 72.1 Switzerland— National … 2,859 3,420 20.0 Local … 1,548 2,250 45.3 Turkey … 365 160 (56.2) United Kingdom (1970–71 and 1976–77) … 1,494 1,685 12.8 USA … 3,225 3,810 18.1 Notes:
1. Income is assumed to be all employment income of the husband.
2. Account has been taken of personal reliefs, minimum expenses deductions and other flat-rate reliefs and deductible social security contributions.
3. Where the starting point for local income tax is significantly lower than for national income tax, the local income tax threshold is also given. Generally the local income tax threshold within a country is the same throughout the country except for:
Sweden—the average local income tax threshold is given.
Switzerland—the threshold for Zurich is given.
4. Tax thresholds in foreign currency for 1970 have been converted to sterling at the average exchange rate for the calendar year 1970. This sterling equivalent has then been converted to 1976 United Kingdom prices by reference to the change in the United Kingdom RPI from 1970 to 1976. This is compared with the 1976 foreign currency threshold converted to sterling at the average exchange rate for the calendar year 1976.
5. Between 1970 and 1976 structural changes have been made in the tax systems of some of the countries listed, for example in Germany the replacement of tax allowances for children by cash transfers.