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Income Tax (Small Earned Incomes)

Volume 414: debated on Thursday 25 October 1945

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asked the Chancellor of the Exchequer what is the estimated cost per head of the collection of Income Tax from persons with small earned incomes; and whether, in view of the high ratio of expense in collecting Income Tax at the rate of 7s. 6d. per year from single persons with £125 per annum earned in come, he will consider the desirability of eliminating all Income Tax in the case of small wage earners where the collection becomes uneconomic on account of its expense.

Such estimates cannot be made with any accuracy, but, as the House knows, I have already taken a long step in the direction suggested by the hon. Member.

Has not the Chancellor any idea of the cost of collecting this money? Why is it considered worth while to collect small sums from little men all over the country?

I do not know whether the hon. Gentleman was present when I made my Budget statement. The matter was referred to in passing.