Vol. 405 No. 9
58 Proinsias De Rossa asked the Minister for Finance the cost to the Exchequer in tax foregone arising from the reduction of the top rate of income tax from 65 per cent to its present top level for each year since the 65 per cent rate was first reduced.
The following table sets out tentative estimates of the revenue which would have accrued to the Exchequer if the 65 per cent rate had been applied as the top income tax rate for each year instead of the actual top rate in force for that year. The figures in the table are compiled on the basis that application of a 65 per cent rate would not have altered the behaviour of taxpayers subject to it; this assumption is unlikely to be realistic.
|
Year ended 5 April |
Top tax rate in force |
Estimated full year yield to the Exchequer if top rate had been 65 per cent |
|
% |
£ million |
|
|
1986 |
60 |
35 |
|
1987 |
58 |
55 |
|
1988 |
58 |
70 |
|
1989 |
58 |
64 |
|
1990 (p) |
56 |
92 |
|
1991 (p) |
53 |
131 |
