§ Mr. Sean HughesTo ask the Chancellor of the Exchequer what was the cost of administering the tax collection system in 1978–79 and 1987–88, in 1978–79 prices.
§ Mr. Norman LamontThe current expenditure costs incurred by Inland Revenue and Her Majesty's Customs and Excise on administering taxes were £524 million in 1978–79 and £566 million in 1987–88 (in 1978–79 prices, deflated by the GDP deflator).
785WThe figure for 1978–79 includes a high degree of estimation because part of the comparable expenditure was at that time borne on the votes of the PSA and the HMSO. In addition, both figures have been adjusted to exclude the estimated costs of activities which had no direct impact on the taxes collected during the two years; for example, the costs of the Inland Revenue's valuation office, except in so far as it provides valuations for tax purposes, and non-revenue work undertaken by Customs and Excise such as prevention of drugs smuggling.