asked the Minister for Finance (a) the gross cost and (b) the net cost to the Exchequer of applying the standard rate of 35 per cent income tax to two-thirds of income taxpayers (i) in 1986 and (ii) in a full year.
Written Answers. - Standard Rate Tax.
The only relevant information available as to cost is in relation to the direct cost to the Exchequer in income tax foregone if the changes referred to in the question were enacted for the income tax year 1986-87 in addition to the changes proposed in this year's Finance Bill. The cost to the Exchequer of expanding the standard rate band to ensure that the marginal rate of tax for two-thirds of income taxpayers will not exceed 35 per cent is estimated at £38 million in 1986 and £63.4 million in a full year.