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'Almost half of poorest people's income goes in tax'.

THE poorest 10% of households pay almost half of their gross income in tax, analysis by a campaign group has claimed. The TaxPayers' Alliance research found that direct and indirect taxes accounted for an average 47% of the gross income of the poorest 10% of households, with VAT accounting for the biggest share of the bill.

The analysis of Office for National Statistics figures showed that the average gross income, including benefits, in the group was PS9,743 but after tax the figure was PS5,132. The figures for 2012/13 showed that for the poorest 10%, some 13.9% of their gross income went on VAT, 7.2% on council tax and 5.6% on alcohol or tobacco duties.

The top 10% of households paid an average 35% of their gross income in taxes, some PS37,287 a year, with income tax accounting for 19.1% of the money paid to the Exchequer.

The campaign group's chief executive Jonathan Isaby said: "This analysis shows how pernicious our tax burden has become.

"Not only does the tax system hit the poorest hardest, but those at the top are already contributing far more than anybody could reasonably describe as their 'fair share'."

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Title Annotation:Features
Publication:Western Mail (Cardiff, Wales)
Date:Dec 22, 2014
Words:201
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