HC Deb 03 May 1978 vol 949 cc188-9W
Mr. Ralph Howell

asked the Chancellor of the Exchequer how much extra revenue from value added tax and other indirect taxes would be necessary in order to revert to the 1959–60 position, when only 36.8 per cent. of total tax revenue was contributed by taxes on personal incomes and capital.

Mr. Robert Sheldon

In 1959–60, taxes on personal incomes and capital accounted for 37.6 per cent. of total tax revenue, not 36.8 per cent., as the hon. Member suggests. The latest estimate for 1978–79 is that taxes on personal incomes and capital will account for 35.2 per cent. of total tax revenues.

Mr. MacGregor

asked the Chancellor of the Exchequer what is the percentage of direct and indirect taxes in the total of tax paid by persons, as given to the hon. Member for Norfolk, South, Official Report, 21st March 1978, column 525, for the out turn of 1977–78 and as estimated for 1978–79.

Mr. Robert Sheldon

I shall let the hon. Member have a reply as soon as possible.

Mr. Lawson

asked the Chancellor of the Exchequer if he will give his estimates of the cost to the Revenue in 1978–79 and in a full year of making the following tax changes over and above those in the Budget Statement (a) a reduction in the basic rate of tax from 34 per cent. to 33 per cent.; (b) extension of the basic rate band by £1,000 to £7,250, (c) an increase in the investment income surcharge thresholds to £2,000 for those under 65 years of age and £3,000 for those aged 65 years of age and over, and harmonisation of the 10 per cent. band at £500 in each case, and (d) taxing slices of taxable income in exces of £8,000 at the following rates: the first £2,000 at 40 per cent., the next £4,000 at 50 per cent., the next £7,000 at 60 per cent., and the remainder at 70 per cent., and the cost of (b) above to be calculated on the basis that the change in (a) above has already been achieved, and the cost of (d) above to be calculated on the basis that the change in (b) above has already been achieved.

Mr. Robert Sheldon

I shall let the hon. Member have a reply as soon as possible.