§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will bring up to date for the current financial year the information given in the reply to the hon. Member for Great Grimsby on 22 March 1984, Official Report, columns 528–29, concerning the proportion of tax paid at specified levels of income.
§ Mr. Norman LamontFigures for 1978–79 and 1986–87 are in the table.
Percentage of gross earnings taken in direct and indirect taxes 1978–79 1986–87 Three times average earnings (a) Direct 34.8 33.7 Average earnings (a) Direct 20.9 21.8 (b) Indirect 11.3 13.0 60 per cent, of average earnings (a) Direct 8.4 10.9 45 per cent, of average earnings (a) Direct -0.8 1.9 Notes:
1. Average earnings are taken to be the average gross weekly earnings of all full-time males on adult rates with pay unaffected by absence. The figure for 1986–87 is illustrative and assumes growth of 7 per cent. over the provisional 1985–86 outturn.
2. Direct taxes include national insurance contributions and are net of child benefit.
3. The estimates of indirect taxes are based on the 1984 family expenditure survey and exclude rates. Estimates cannot reliably be made outside the range 75 to 150 per cent. of average earnings.