Taxation A Head Expected To Show Rise This Year

Press, Volume XCIX, Issue 29264, 23 July 1960, Page 12

Taxation A Head Expected To Show Rise This Year

In spite of the -reductions in taxes on several commodities announced by the Minister of Finance (Mr Nordmeyer) in his Budget on Thursday evening, total taxation receipts and taxation a head are both estimated to increase this year. Calculations based on the Budget tables show that taxation a head is likely to rise to about £l3O 4s in the 1960-61 fiscal year, compared with £126 17s last year Indirect taxes (sales tax, customs and excise duties and taxes on motoring) are estimated at £43 19s a head .in the present fiscal year—a reduction of £2. Direct taxes (income and social security taxes, death duties and land tax), however, will rise from £BO 18s a head to an estimated £B6 ss. Although no increases in any of these rates were announced by Mr Nordmeyer, he expects incomes to rise, and total tax yields to rise accordingly.

In the table below, taxation a head is shown for the last six years, together with the estimated figures for the current year.

The last column, showing total taxation a head as a percentage of national income a head, enables a .comparison to be made of'the burden of taxation from year to year. It can be seen from this series that, although the money value of taxation has risen in most years, taxation has varied only between 26.3 per cent, and 31.7 per cent, of national income.

The figure for the current year cannot be calculated, of course, until national income for the current year is known. This estimate will not be available until July or August next year. The official national income esti-

mate for the year ended March, 1960, has not yet been published, but unofficial estimates place the figure around £ 1035 m. On this basis, the taxation a head last year was 28.7 per cent, of national income a head.

Taxation in the current year would represent 28.7 per cent, of a national income of £ 1087 m. which appears to be a conservative estimate of this year’s national income. If national income exceeds £ 1087 m, taxation will therefore be less than last year’s estimated 28.7 per cent, of national income; \

TAXATION A HEAD Direct Tax as p.c.pf NatIndirect Total Inc. 1954-55 £ 72 S. 17 £ 37 s. £ s. 109 16 29.3 1955-5$ 74 11 39 6 113 17 29.0 77 4 38 0 115 4 28.5 1957-58 68 15 40 6 109 1 26.3 1958-59 87 16. 45 0 132 16 31.7 1959-60 80 18 45 10 126 17 28.7* 1960-61 86 5* 4X19* 130 4* Estimated-