§ Mr. David Atkinson
asked the Chancellor of the Exchequer, pursuant to the reply of 28 February, Official Report, c. 23, what assessment he has made of the effect of article 27(1) of the EC sixth directive on VAT regarding the ability of member states to establish their own level of tax threshold for value added tax.
§ Mr. Bruce-Gardyne
[pursuant to his reply, 3 March 1983, c. 210]: Article 27(1) of the EC sixth directive provides that the Council, acting unanimously on a proposal from the Commission, may authorise any member state to introduce special measures for derogation from the provisions of the directive in order to simplify the procedures for charging the tax or to prevent certain types of tax evasion or avoidance. It expressly states, however, that such measures may not affect, except to a negligible extent, the amount of tax due at the final consumption stage. Any measure to allow member states to increase their levels of tax threshold in real terms would affect tax due at final consumption.