HC Deb 16 February 1984 vol 54 cc251-2W
Sir Brandon Rhys Williams

asked the Chancellor of the Exchequer what is his latest estimate of the aggregate tax expenditure cost of all income tax allowances, reliefs and exemptions in the current financial year.

Mr. Moore

Not all income tax reliefs are tax expenditure. Many of them form an integral part of the tax structure. The costs, in 1982–83, of those reliefs for which estimates can be made, are contained in table 4.7 of "The Government's Expenditure Plans 1983–84 to 1985" — Cmnd. 8789. Figures for 1983–84 will be included in the forthcoming public expenditure White Paper.

I regret that it is not possible to produce a reliable estimate of the aggregate cost of all reliefs allowances and exemptions, because of the interaction between reliefs and lack of information about earnings below the tax threshold or outside the scope of income tax.

Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will list in league order the 10 countries known to him to have the highest top rate of income tax, including investment income.

Mr. Moore

The information available is given in the tables:

Table 1
Ten countries with highest top rates of income tax on earned (employment) income
Per cent.
Including local income taxes
Libya 96.5
Tanzania 95
Japan 88.4
Ethiopia 85
Portugal 84.4
Sweden 84
Algeria 82.7
Tunisia 81.9
Zambia 80
Poland 78
Excluding local income taxes
Libya 96.5
Tanzania 95
Ethiopia 85
Portugal 84.4
Algeria 82.7
Tunisia 81.9
Zambia 80
Poland 78
Japan 75
Belgium 72
Netherlands 72

Table 2
Ten countries with highest top rates of income tax on investment income
Per cent.
Including local income taxes
German Democratic Republic 98
Libya 95.5
Tanzania 95
Japan 93
Ethiopia 89
Portugal 86
Poland 85
Sweden 84
Algeria 83.6
Tunisia 83.3
Excluding local income taxes
German Democratic Republic 98
Libya 95.5
Tanzania 95
Ethiopia 89
Portugal 86
Poland 85
Algeria 83.6
Tunisia 83.3
Zambia 80
Japan 75
United Kingdom 75

Notes:

  1. 1. The tables give the rate of tax for the latest year for which firm information is available.
  2. 2. The rates for investment income may not relate to all types of investment income.
  3. 3. Local income taxes have generally been taken into account at typical rates. In the case of Sweden, however, the figure given is the maximum combined rate of national and local tax for 1983.

Mr. Rooker

asked the Chancellor of the Exchequer, pursuant to the answer to the hon. Member for Birmingham, Perry Barr on 9 February, Official Report, c. 745–46, concerning the standard rate of income tax, what factors have arisen since 23 November 1982 which now make it impossible to forecast income tax revenue for the next financial year.

Mr. Moore

A forecast of income tax revenue for 1984–85 will be given in the financial statement and Budget report.