Vol. 432 No. 6
88 Mr. Hilliard asked the Minister for Finance if he will give the amount of revenue that would be lost to the State if the standard rate of income tax were reduced by one per cent; and the amount of revenue that would be lost to the State if the single person's income tax allowance were increased by £1,000; and if he will make a statement on the matter.
The full year cost, estimated by reference to the 1993-94 tax year, of a reduction in the standard rate of income tax from 27 per cent to 26 per cent is estimated at £74 million.
The full year cost of a £1,000 increase in the single person's income tax allowance is estimated at £400 million. The answer takes account of the assumption that any increase in the single allowance must be combined with an equal increase in the allowance for widowed persons and with double that increase in the allowance for married persons assessed to tax on the aggregate basis.
