§ Mr. HinchliffeTo ask the Chancellor of the Exchequer what estimates he has for the expenditure incurred in administration and collection of insurance premium tax.
§ Sir John CopeIt is a priority in the implementation of insurance premium tax to minimise the compliance and administrative costs associated with it, recognising that there are a wide range of interests within the insurance sector. Discussions since the Budget between Her Majesty's Customs and Excise and representatives of the insurance industry have been very much directed toward this end. When firm conclusions have been reached on the actual operation of the tax, a revised compliance cost assessment will be issued. However, it is clear that in terms of the likely costs of administration by Customs the tax will be highly cost effective; whilst the compliance costs of the insurance industry should not in practice prove burdensome.