asked the Minister for Finance the net estimated yields to the Exchequer in the final 11 months of 1979 of an increase in each of the following items: (a) in the price of petrol to an average £1 per gallon (b) four pence on a pint of beer, (c) five pence on a glass of spirits, (d) 10 per cent increase in duty on spirits, (e) four pence on a packet of 20 cigarettes; the annual cost of an increase of from £240 to £280 in the child tax allowance; and the net estimated increase in income tax receipts for 1979, assuming no changes in personal tax allowances.
Written Answers. - Estimated Tax Yields.
216.
The following is the information requested:
|
Increase |
Estimated additional yield (including VAT) in the final 11 months of 1979 |
|
£m. |
|
|
(a) in the price of petrol to £1 (premium grade average) |
15.3 |
|
(b) 4p on a pint of beer (of average gravity) |
18.6 |
|
(c) 5p on a glass of spirits (70º proof) |
10.2 |
|
(d) 10% increase in duty on spirits (70º proof) |
6.9 |
|
(e) 4p on a packet of 20 cigarettes (in the most popular price category) |
11.0* |
The annual cost of increasing the child tax allowance from £240 to £280 is estimated at £8.2 million.
The estimate of income tax receipts for 1979 will be published in "Estimates of Receipts and Expenditure for the year ending December 31, 1979" which will be available in advance of the 1979 Budget.
*This estimate is based on the assumption that the increase in cigarettes would be accompanied by proportionate increases on other tobacco products.