§ Mr. Masonasked the Chancellor of the Exchequer if he will list the recent recommendations that have emanated from the European Commission and the rulings from the European Court of Justice concerning British taxation policies on alcohol, especially regarding beer.
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§ Mr. LawsonOn 12 July 1983 the European Court decided that the United Kingdom rates of excise duty on wine and beer contravene article 95 of the Treaty of Rome by affording protection to domestic beer production against imports of Community still light wine. In a reasoned opinion dated 1 August 1983 the Commission alleged that the duty rates on wine, made-wine, cider and perry also contravene article 95. A reasoned opinion dated 9 November 1983 alleged that the denaturing and marking requirements for perfumed spirits discriminate against imported products.
§ Mr. Masonasked the Chancellor of the Exchequer, in view of the confusion in the licensing trade, if he will make a full statement on the specific implications for beer as they affect licensed house tenants and brewers and the likely effects on prices which result from the European Court' s rulings which relate to alcohol prices.
§ Mr. LawsonThe European Court's decision of 12 July 1983 in case No. 170/78 related to the United Kingdom's taxation of wine and beer. The Court decided that United Kingdom rates of duty on wine and beer afford protection to domestic beer production against imports of Community still light wine; but the judgment does not indicate precisely the extent of the protection. The judgment is one of the factors I shall take into account when reviewing the excise duty rates before the Budget. Any changes in duty rates would clearly affect the price of alcoholic drinks in public houses, but pricing policy is a matter for the trade.