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Tax Yields

Volume 972: debated on Monday 22 October 1979

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asked the Chancellor of the Exchequer how much he expects the yield (a) from income tax and (b) from value added tax to be increased in the current financial year, above that estimated in the Budget, due to the acceleration of inflation.

The Budget forecasts of tax revenues took account of the expected increase in the rate of inflation this year. Estimates of revenues in 1979–80 will be published with next year's Budget. For every 1 per cent. extra on the wage and salary bill, as a result of higher earnings, the yield of income tax will increase by about £300 million in the current financial year.