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Tax Yields

Volume 976: debated on Tuesday 20 November 1979

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asked the Chancellor of the Exchequer what would be the additional tax yield from each of the following, making any appropriate statistical allowances for falling consumption, namely (a) a 35p increase in the duty on spirits, (b) a lop increase in the duty on cigarettes and tobacco, (c) a 20p increase in the duty on wine, (d) a 2p increase in the duty on beer, (e) a lop increase in petrol tax and (f) an increase to £60 in the motor vehicle licence.

[pursuant to his reply,19 November 1979]: It is estimated that the adidtional revenue, including the extra VAT, would be about:from taxes on gambling; and what increased revenue would accrue from each of the following changes, making whatever statistical assumptions he thinks proper for evasion or reduced activity, namely (

a) a 10 per cent. increase ( b) a 20 per cent. and ( c) a 30 per cent.

[pursuant to his reply,19 November 1979]: The Budget estimate of revenue in 1979–80 from betting and gaming duties is £410 million. It is not possible to make reliable estimates for the effect of increases in the general betting and pool betting duties because it is not known how punters would react to increases of the scale envisaged in the question. It is estimated that the additional revenue from increasing the gaming licence, gaming machine licence and bingo duties would together be about (a) £4 million (b) £8 million and (c) £12 million in a full year.