Regulation 21 Insertion of regulation 66A (How to calculate country-specific multiplier)I1

After regulation 66(interpretation) insert—

“How to calculate country-specific multiplier

66A.

(1)

The country-specific multiplier for a country is the multiplier specified in the table in relation to its band.

(2)

The band for a country is the band specified in the table in relation to its price level index value.

Price level index value (x)	Band	Multiplier
x<0.3	A	0.2
0.3≤x<0.5	B	0.4
0.5≤x<0.7	C	0.6
0.7≤x<0.9	D	0.8
0.9≤x<1.1	E	1.0
1.1≤x<1.3	F	1.2
x≥1.3	G	1.4

(3)

The price level index value for a country is the quotient of—

(a)

the price level value for the country in the most recent year available, and

(b)

the price level value for the United Kingdom in the same year.

Example
0.736687 is the country’s price level value and 1.058064 is the United Kingdom’s price level value. 0.736687 divided by 1.058064 is 0.696259…‬ (unrounded). The price level index value for the country is 0.696259…, which is Band C. The country-specific multiplier for a country in Band C is 0.6.

(4)

If the price level value for a country is not published, the Department may determine the price level value for that country by reference to a comparable country.

(5)

In this regulation, “price level value” means the value published by the World Bank in its “Price level ratio of PPP conversion factor (GDP) to market exchange rate” world development indicator^f1.”

Status of examples

66B.

(1)

An example used in these Regulations—

(a)

is only illustrative of the provision to which it relates, and

(b)

does not limit the provision.

(2)

If an example and the provision to which it relates are inconsistent, the provision prevails.”.