HC Deb 11 June 1979 vol 968 cc137-8W
Mr. Tom Benyon

asked the Chancellor of the Exchequer whether it is his intention to exempt from the investment income

United Kingdom France German Federal Republic
Percentages of total taxation—including Social Security contributions—in 1976 contributed by—
Taxes on personal incomes … … … 37.3 12.5 30.2
Value added tax … … … … 8.6 23.4 14.2
Other taxes … … … … … 34.7 23.9 20.9
Social security contributions … … 19.4 40.2 34.7
Source: OECD Revenue Statistics, 1965–76.)

In the United Kingdom "other taxes" include corporation tax, capital gains tax, death duties, oil revenue tax; duties on tobacco, alcoholic beverages, betting and gaming; local authority rates and motor vehicle duties. There is a similar wide variety of "other taxes" in France and Germany.

Mr. Ralph Howell

asked the Chancellor of the Exchequer what would be the loss of revenue if the United Kingdom adopted the same income tax rates and same tax thresholds as Western Germany and France, respectively; and what would be the increase in revenue if the United Kingdom adopted the same value added tax rates as in West Germany and France, respectively.

Mr. Peter Rees

The direct tax systems for France and West Germany are very different from the United Kingdom system. To produce an estimate for the loss of revenue would mean attempting to apply the French and West German tax systems to a model of the United Kingdom population. With regard to VAT, France has three different rates and West Germany two. The coverages of the different rates in the two

come surcharge the disabled, irrespective of age, who have had to accept enforced retirement and a lower occupational pension.

Mr. Peter Rees

I have noted my hon. Friend's suggestion, but I cannot anticipate my right hon. and learned Friend's Budget Statement.