§ Mr. David ShawTo ask the Chancellor of the Exchequer what information he has as to the lowest rate of nominal income tax, and the date on which each such rate was set, in(i) Italy, (ii) Luxembourg, (iii) the Netherlands, (iv) Portugal, (v) Spain, (vi) Japan, (vii) Denmark, (viii) the United States of America, (ix) New Zealand, (x) Canada, (xi) Australia, (xii) Belgium, (xiii) West Germany, (xiv) France and (xv) Greece; and what assessment he has made in each case of the effect on the international competitive position of the United Kingdom economy.
§ Mr. Norman LamontBelow is a table of countries showing in each case the lowest rate of nominal income tax and the date on which such rate was set.
Country Lowest nominal rate Effective from year Per cent. Italy 12.0 1986 Luxembourg 10.0 1987 Netherlands 14.0 1988 Portugal 4.0 1979 Spain 25.0 1988 Japan 10.5 1984 Denmark 22.0 1987 United States of America 15.0 1988 New Zealand 15.0 1987–88 Canada 17.0 1988 Australia 24.0 1987–88 Belgium 24.2 1987 Federal Republic of Germany 22.0 1975 France 5.0 1973 Greece 6.0 1985 Explanatory Notes:
(a) In Luxembourg, Spain Australia, Belgium, France and Greece the lowest bracket on the tax table is actually 0 per cent. For these countries the first figure appearing after 0 per cent. has been chosen.
(b) In some countries local income tax is also charged.
(c) In Germany it is proposed to reduce the lowest rate of nominal income tax to 19 per cent.
This Government's policy of reducing income tax rates has increased incentives and encouraged enterprise, thereby improving the international competitive position of the United Kingdom economy.