asked the Minister for Finance the tax revenues as a percentage of gross national product for the years 1977 to 1987 inclusive for income tax including levies, VAT, excises, corporation tax, stamp duties, capital taxes and the tax revenue; and if he will make a statement on the matter.
Written Answers. - Tax Revenue.
72.
The attached table sets out the information requested in respect of the years 1977 to 1987. The table shows a substantial increase in taxation as a percentage of GNP over the period, particularly for income tax and Value-Added Tax.
The Government are committed to reform of the tax system as to improve its equity and efficiency. In particular, the Government intend to give additional tax relief to income taxpayers over the next three years in line with their commitment in the Programme for National Recovery published recently. This commitment entails giving income tax reductions to the cumulative value of £225 million, including increases in the PAYE allowance costing £70 million. In the context of this provision, the Government will make significant progress towards having two-thirds of taxpayers on the standard rate by adjustment of the 35 per cent band.
Tax Revenue
(As % of Gross National Product)
|
1977 |
1978 |
1979 |
1980 |
1981 |
1982 |
1983 |
1984 |
1985 |
1986 Prov. Outturn |
1987 Post-Budget Estimate |
|
|
Stamp Duties |
0.4 |
0.5 |
0.6 |
0.5 |
0.6 |
0.7 |
0.8 |
0.8 |
0.8 |
1.0 |
0.8 |
|
Excise Duties |
8.0 |
7.6 |
7.9 |
9.4 |
9.8 |
9.1 |
8.7 |
8.5 |
8.6 |
8.5 |
8.4 |
|
Capital Taxes |
0.3 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
0.2 |
|
Income Tax |
9.3 |
9.3 |
9.6 |
11.3 |
11.4 |
11.7 |
12.3 |
13.4 |
13.7 |
14.7 |
15.7 |
|
Income Levy |
— |
— |
— |
— |
— |
— |
0.3 |
0.5 |
0.5 |
0.2 |
— |
|
Youth Employment Levy |
— |
— |
— |
— |
— |
0.3 |
0.5 |
0.6 |
0.5 |
0.6 |
0.5 |
|
Corporation Tax |
1.4 |
1.6 |
1.7 |
1.5 |
1.8 |
1.9 |
1.6 |
1.4 |
1.4 |
1.6 |
1.5 |
|
Value-Added Tax |
5.7 |
6.4 |
5.5 |
5.2 |
5.7 |
7.6 |
8.8 |
9.3 |
9.1 |
9.4 |
9.4 |
|
Total Tax Revenue* |
26.5 |
26.5 |
26.3 |
29.1 |
30.5 |
32.5 |
34.7 |
36.2 |
36.4 |
37.6 |
38.0 |
*Total Tax Revenue also includes customs and agricultural levies.