asked the Minister for Finance the cost of indexation of the PAYE tax bands in each of the years 1988, 1989 and 1990.
37.
Written Answers. - Tax Relief Cost.
16.
asked the Minister for Finance the cost of indexation of the personal PAYE allowance in each of the years 1988, 1989 and 1990.
It is proposed to take Questions Nos. 16 and 37 together.
As the reply contains statistical data, I propose to circulate it in the Official Report. Following is the reply.
The following table sets out the estimated costs to the Exchequer in 1988, 1989 and 1990, in terms of income tax revenue foregone, of the indexation of the employee (PAYE) allowance and the income tax rate bands.
Estimated Costs to the Exchequer
|
1988 |
1989 |
1990 |
||||
|
All Sectors |
PAYE Sector |
All Sectors |
PAYE Sector |
All Sectors |
PAYE Sector |
|
|
£ million |
£ million |
£ million |
£ million |
£ million |
£ million |
|
|
Indexation of: |
||||||
|
(a) Employee (PAYE) Allowance |
4.9 |
4.9 |
12.7 |
12.7 |
21.4 |
21.4 |
|
(b) Tax rate bands |
10.0 |
9.2 |
25.8 |
24.5 |
46.5 |
42.4 |
The cost shown for each of the years 1989 and 1990 includes the cost of indexation conceded up to the immediately preceding year.
The figures shown in the table are subject to revision and those for 1989 and 1990 should be regarded as tentative estimates only.