The next two biggest earners are VAT, which is paid on many purchases, and National Insurance (NI), which is another tax levied on people’s earnings.
The OBR has forecast that VAT will raise £203 billion in 2024/25.
However, the government said it expected to raise, external £2.2bn less from NI this year – about £168bn – after the rate of National Insurance was cut from 12% to 10% in January.
The tax categories described as “other” – including capital gains tax, stamp duty and vehicle excise duty – are expected to raise £115 billion in this tax year, according to the OBR.
The OBR said, external the overall level of tax as a proportion of the size of the economy would rise in each of the next five years to a post-war high of 38% of GDP.
Some sources of money for the government don’t come from taxation, such as student loan repayments, which are included in the “other non-taxes” category.
Credit: Source link
