§ Mr. Robert Taylorasked the Chancellor of the Exchequer what is the position of Her Majesty's Government regarding Articles 13 and 14 of the EEC draft directive on value added tax.
§ Mr. HigginsWe regard the EEC draft directive on VAT as a useful basis for discussion between member States of the problems of harmonising VAT systems within the Community, while leaving member States free to fix their own rate structure. Article 99 of the Treaty of Rome charges the Commission with responsibility for submitting proposals for harmonising legislation concerning taxation but the adoption of such proposals requires a unanimous decision by the Council.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent discussions have ensued or are anticipated within the EEC on the imposition of value added tax on the selling price of new houses.
§ Mr. HigginsThe EEC Commission has sent to the Council a draft Sixth Directive for the harmonisation of VAT systems within the Community. Its proposals include measures for the continuation of the zero-rating of new houses in this country until the Council decides otherwise but not later than the abolition of fiscal frontiers. Any proposals for harmonising legislation concerning VAT including those in the draft Sixth Directive and the eventual abolition of fiscal frontiers must be decided upon by the Council unanimously. The draft Sixth Directive is being discussed in the European Parliament and the Economic and Social Committee. It will in due course also be given detailed consideration by the Council in which the United Kingdom will participate fully.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent discussions have ensued or are anticipated within the EEC on the imposition of value added tax on petrol.
§ Mr. HigginsThe EEC Commission has sent to the Council a draft Sixth Directive for the harmonisation of VAT systems within the Community. Its proposals include measures for the continua-720W tion of the zero-rating of petrol in this country until the Council decides otherwise but not later than the abolition of fiscal frontiers. Any proposals for harmonising legislation concerning VAT including those in the draft Sixth Directive and the eventual abolition of fiscal frontiers must be decided upon by the Council unanimously. The draft Sixth Directive is being discussed in the European Parliament and the Economic and Social Committee. It will in due course also be given detailed consideration by the Council in which the United Kingdom will participate fully.