§ Mr. Ralph Howellasked the Chancellor of the Exchequer if he will list for 1984, in league order, the 10 countries known to him to have the highest top rate of income tax (a) on earned income and (b) on all income, including investment income; and if he will include details for the United Kingdom.
§ Mr. MooreThe information available for other countries is given in the tables. The top rate of income tax in the United Kingdom is 60 per cent. on all income.
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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 Algeria 86 Ethiopia 85 Portugal 84.4 Japan 83.6 Tunisia 82.2 Sweden 81.2 Zambia 80 Poland 78 Excluding local income taxes Libya 96.5 Tanzania 95 Algeria 86 Ethiopia 85 Portugal 84.4 Tunisia 82.2 Zambia 80 Poland 78 Belgium 72 Netherlands
Table 2 Ten countries with highest top rates of income tax on all income, including investment income per cent. Including local income taxes German Democratic Republic 98 Libya 96.5 Tanzania 95 Ethiopia 89 Japan 88 Portugal 86 Algeria Tunisia 85.85 Poland 85 Sweden 81.2 Excluding local income taxes German Democratic Republic 98 Libya 96.5 Tanzania 95 Ethiopia 89 Portugal 86 Algeria Tunisia 85.85 Poland 85 Zambia 80 Belgium 72 Netherlands Notes
1. The tables give the rate of tax for the latest year for which firm information is available.
2. The rates for investment income may not relate to all types of investment income.
3. Local income taxes have, where chargeable, been taken into account at typical rates.