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Tax Revenue

Volume 934: debated on Monday 27 June 1977

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asked the Chancellor of the Exchequer by what amount each of the following taxes would have to be raised in order to collect the revenue currently collected by the domestic rate: (a) income tax (b) VAT (c) vehicle licence duty and (d) tobacco duty.

Assuming that the revenue currently raised from domestic rates is to be replaced by each of the following taxes separately, the necessary increases would be:

  • (a) income tax—4½p;
  • (b) VAT—6 percentage points on the standard rate;
  • (c) vehicle excise duty—each rate up 110 per cent;
  • (d) tobacco—duty up 200 per cent.
  • ((c) and (d) assume no change in consumption patterns.)