§ Mr. BakerTo ask the Chancellor of the Exchequer if charges levied in respect of(a) road pricing and (b) workplace charging will be subject to VAT. [63640]
§ Ms Hewitt[holding answer 15 December 1998]: As the recent consultation document "Breaking the logjam" issued by the Department of the Environment, Transport and the Regions said, there may be VAT implications for road user and workplace parking charges. A case is to be heard by the European Court of Justice on the VAT treatment of toll charges, and the outcome of this case will determine whether road user charges should bear VAT.