§ Mr. Cyril D. Townsend
asked the Chancellor of the Exchequer in what terms the Government intend to respond to the European Community Commission's reasoned opinion of 1 August 1983 on the taxation of wine, made wine, cider and perry.
§ Mr. Hayhoe
The Commission will be informed that the Government propose to re-examine before the next Budget the magnitudes of the differences between the rates of duty on wine and made wine, in the light of the European Court judgment in case no. 170/78. It will also state that the Government propose, at an early opportunity, to reclassify as made-wine for duty purposes beverages derived from apples and pears which contain 8.5 per cent. or more of alcohol by volume but less than 8.7 per cent.
The proposal to reclassify for duty purposes certain beverages derived from apples and pears has been discussed with trade associations representing producers of made wine, cider and perry and is acceptable to those associations.