§ Mr. Arthur Lewisasked the Minister of Posts and Telecommunications to what extent in the countries of the Six a value added tax is imposed on telephone calls and postal charges; at what rates; whether such rates will have to be har- 118W monised on Great Britain's entry into the Community; and to what extent this will increase the price of telephone calls to the subscriber and postal charges to the user.
§ Sir J. EdenI understand that all letter and most parcel services are exempt in the five countries of the Community that have introduced the tax. Telecommunication charges are taxed at 14 per cent. in Belgium, are partially exempt in Germany, and are wholly exempt elsewhere. Progress towards harmonisation will be gradual and will not call for any immediate change in United Kingdom VAT rates on our entry into the Community.