§ Mr. Ralph HowellTo ask the Chancellor of the Exchequer what percentage of taxation, including national insurance contributions, was derived from(a) direct taxation and (b) indirect taxation, in each year since 1979.
§ Mr. LilleyInternationally, there is no general agreement on the criteria for distinguishing between direct and indirect taxes. However, broadly speaking, taxes on income and capital can be regarded as direct taxes, and taxes on expenditure as indirect taxes. On this basis, and including relevant non-tax items (such as national insurance, community charge and royalties), the figures requested are as follows:
(1) (2) 1978 49.0 51.0 1979 46.2 53.8 1980 46.5 53.5 1981 47.4 52.6 1982 48.3 51.7 1983 48.7 51.3 1984 49.2 50.8 1985 49.7 50.3 1986 47.3 52.7 1987 46.8 53.2 1988 47.0 53.0 1989 48.1 51.9 (1) Taxes on income plus taxes on capital plus employees' social security contributions plus community charge plus royalties as percentage of (3).
354W(2) Taxes on expenditure (including rates) plus employers' social security contributions as percentage of (3).
(3) Total taxes (including rates) plus social security contributions plus community charge plus royalties.