asked the Minister for Finance the cost (a) from April 1986, (b) in full year of adding the income and youth employment levies to the existing tax bands and making them subject to the usual tax-free allowances.
Written Answers. - Extension of Tax Bands.
155.
The 1985 yield from the income levy and the youth employment levy was £157 million. Based on the 1985-86 tax year, the extra income tax yield which would arise from increasing the tax rates by 2 percentage points from 35 per cent, 48 per cent and 60 per cent, to 37 per cent, 50 per cent and 62 per cent respectively would be £108 million in a full year. The difference between these two yields, (i.e. £157 million less £108 million) of £49 million would be the full year cost of the proposal. The cost from April 1986 would be approximately £25 million.