asked the Minister for Finance if each of the following rates of income tax was reduced by 10 per cent, the amount of revenue which would be lost to the Exchequer: (a) 35 per cent, (b) 48 per cent and (c) 58 per cent; and if he will make a statement on the matter.
Written Answers. - Income Tax Rate Reduction.
41.
The full cost to the Exchequer from reducing each of the three existing income tax rates (35 per cent, 48 per cent and 58 per cent) by ten percentage points is shown in the following table:
|
Existing Rate |
Proposed Rate |
Estimated cost to the Exchequer |
|
% |
% |
£m. |
|
(a)35 |
25 |
450 |
|
(b)48 |
38 |
85 |
|
(c)58 |
48 |
80 |
These figures are estimated by reference to the income tax year 1988-89 and assume the enactment of this year's budget proposals.