Thomas P. Broughan
Question:75 Mr. Broughan asked the Minister for Finance the current costs of reducing the 48 per cent and 27 per cent bands of income tax by 1 per cent respectively. [7923/96]
Written Answers. - Tax Reduction Costs.
Assuming the enactment of the changes proposed in this year's Finance Bill, the estimated costs to the Exchequer of the changes mentioned in the question in respect of the income tax year 1996-97 are as follows: Reduction of the standard rate of income tax to 26 per cent would cost £83.5 million in a full year and reduction of the 48 per cent rate of income tax to 47 per cent would cost £42 million in a full year.