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23 Apr 2007 : Column 985W—continued
Import Duties: Lighting
Mr. Redwood: To ask the Chancellor of the Exchequer what tariffs and duties are levied on low energy light bulbs imported into the UK from Asia. [132875]
Dawn Primarolo: The standard customs duty rate levied on low energy light bulbs imported into the UK is 2.7 per cent. In addition, there is value added tax of 17.5 per cent. Imports of these light bulbs originating in certain Asian countries may qualify for a preferential rate of duty of 0 per cent.. The list of potential qualifying countries are:
Brunei - Darussalam
Cambodia
Indonesia
Laos
Bangladesh
Bhutan Pakistan
India
Maldives
Malaysia
Philippines
Vietnam
Thailand
Nepal
Sri Lanka.
However, an anti-dumping duty of 66.1 per cent. has been imposed on one type of low energy light bulb when the country of origin is China. The particular product is an electronic compact fluorescent discharge lamp functioning on alternating current (including electronic compact fluorescent discharge lamps functioning on both alternating and direct current) with one or more glass tubes, with all lighting elements and electronic components fixed to the lamp foot, or integrated in the lamp foot. Anti-dumping duty is an import duty imposed in addition to normal customs duty and applies across the EU.
Income Tax: Tax Rates and Bands
Dr. Cable: To ask the Chancellor of the Exchequer if he will estimate the revenue implications of a 1 per cent. change in the basic rate of income tax in each year from 2007-08 to 2010-11; and if he will make a statement. [131840]
Dawn Primarolo: The information requested can be found in the following table.
| Cost/yield ( £ billion ) | |
Figures provided are on an accruals basis.
The estimates are based on the 2004-05 survey of personal incomes projected forward against an indexed baseline which includes the reforms to simplify the income tax and National Insurance system announced at Budget 2007.
The figures exclude any estimate of behavioral response to the tax change which could be significant given the scale of the change.
Mr. David Anderson: To ask the Chancellor of the Exchequer what assessment he has made of the impact of the removal of the 10 pence tax rate on the incomes of people aged (a) between 60 and 65 years and (b) 65 years and older. [132170]
Dawn Primarolo: The removal of the 10 pence tax rate was part of a package of reform announced in Budget 2007, which also included reducing the basic rate of income tax from 22p to 20p, increasing aged personal allowances, aligning the Upper Earnings Limit with (an increased) higher rate threshold and increases to the working tax credit and child tax credit.
As a result of this package, we estimate that on average households including someone aged 60 to 64 will be over £27 a year better off in 2009-10, while households with someone aged 65 or more will be on average £72 a year better off (in 2007-08 prices).
Income Tax: Tax Thresholds
Dr. Cable: To ask the Chancellor of the Exchequer (1) if he will estimate the number of income tax payers who would be removed from taxation as a result of raising the income tax threshold to (a) £7,500, (b) £8,000, (c) £8,500, (d) £9,000, (e) £9,500 and (f) £10,000 in each year from 2007-08 to 2010-11; and if he will make a statement; [131841]
(2) if he will estimate the revenue implications of increasing the personal tax free allowance to (a) £7,500, (b) £8,000, (c) £8,500, (d) £9,000, (e) £9,500 and (f) £10,000 in each year from 2007-08 to 2010-11; and if he will make a statement. [131842]
Dawn Primarolo: The information requested can be found in the following tables .
| Taxpayers removed from income tax | ||||||
| Number: (£ million ) | ||||||
| Personal allowance | ||||||
| Cost of increasing the personal allowance | ||||||
| (£ billion) | ||||||
| Personal Allowance | ||||||
Personal allowances for people aged 65 and over have been aligned with the ordinary personal allowance when exceeded.
The estimates are based on the 2004-05 survey of personal incomes projected forward against an indexed baseline which includes the reforms to simplify the income tax and National Insurance system announced at Budget 2007.
The figures exclude any estimate of behavioral response to the tax change which could be significant given the scale of the change.
Mr. Redwood: To ask the Chancellor of the Exchequer if he will estimate the reduction in revenue from raising the 40 per cent. tax rate threshold for income tax to £50,000 of taxable income in a full tax year. [132814]
Dawn Primarolo: Raising the higher rate threshold to £50,000 for 2007-08 would cost £5.3 billion.
This estimate is based on the 2004-05 survey of personal Incomes projected forward in line with Budget 2007 assumptions.
The figure excludes any estimate of behavioural response which could be significant given the scale of the change.
Inheritance Tax
Dr. Cable: To ask the Chancellor of the Exchequer if he will estimate the cost of raising the inheritance tax threshold to £500,000 in each year from 2007-08 to 2010-11; and if he will make a statement. [131838]
Dawn Primarolo: I refer the hon. Gentleman to the answer I gave him on 18 April 2007, Official Report, column 692W.
Mr. Redwood: To ask the Chancellor of the Exchequer if he will estimate the reduction in revenue from raising the inheritance tax threshold to £1 million in a full tax year. [132812]
Dawn Primarolo: Raising the inheritance tax nil rate band to £1,000,000 from 2008-09 would incur a full year cost of around £3.1 billion.
Local Government Finance: Scotland
John Robertson: To ask the Chancellor of the Exchequer what advice HM Revenue and Customs gave to Sir Peter Burt's Local Government Finance Review Committee on the implementation of a local income tax for the 32 local authorities in Scotland. [133522]
John Healey: I refer the hon. Gentleman to the answer I gave the hon. Member for Hammersmith and Fulham (Mr. Hands) on 9 October 2006, column 285-286W.
Low Incomes
Mr. Gauke: To ask the Chancellor of the Exchequer what estimate he has made of the proportion of income of each of the four lowest earning deciles which is made up of (a) benefits and tax credits and (b) earnings from work. [132125]
Dawn Primarolo: The information requested falls within the responsibility of the National Statistician, who has been asked to reply.
Letter from Karen Dunnell, dated 23 April 2007:
As National Statistician, I have been asked to reply to your recent question asking the Chancellor of the Exchequer, what estimate he has made of the proportion of income of each of the four lowest earning deciles which is made up of (a) benefits and tax credits and (b) earnings from work. (132125).
Estimates of income received by households from different sources are provided in the ONS analysis 'The effects of taxes and benefits on household income'. The latest analysis for 2004/05 was published on the National Statistics website on 12th May 2006 at http://www.statistics.gov.uk/taxesbenefits. The analysis for 2005/06 will be published on 17th May. This annual publication is based on data from the Expenditure and Food Survey, which is a sample survey covering approximately 7,000 households in the UK.
The attached table shows income from work and income from benefits, as a proportion of gross income, by income decile group. The income decile groups are determined by ranking households according to their equivalised disposable income. Equivalised incomes are standardised to adjust for the different sizes and compositions of households, and equivalised disposable income (rather than just earned income, or any other definition of income) is the most widely used measure of living standards, and the commonly used basis for income distribution statistics. While this equivalisation reduces the extent to which household size in particular varies across the income distribution, there is still considerable variation in respect of other household characteristics, for example the age of the household reference person (households where the household reference person is old are more concentrated towards the bottom of the distribution).
Income from work includes income from employment, imputed income from benefits in kind (mainly company cars), and income from self-employment. Cash benefits include things like income support, pension credit, child benefit, incapacity benefit, the state retirement pension, and tax credits.
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