§ Mr. Teddy Taylorasked the Chancellor of the Exchequer when he expects the European Court of Justice to consider and determine the case being promoted by the European Economic Community Commission for a declaration that the zero rating of sewerage, water, gas, electricity, new houses and protective clothing and footwear should be discontinued for purposes of levying value added tax; and if he will make a statement.
§ Mr. BrookeThe written part of the proceedings has now been completed: the United Kingdom's rejoinder was lodged with the court on 2 October 1986; but a date for 627W the oral hearing has not yet been set. It is unlikely to be before March 1987. Judgment is normally given about two months after the oral hearing.
§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what estimate he has made of additional revenue per annum which would accrue to the Treasury if the United Kingdom abolishes zero rating for certain goods and services as proposed in the infraction proceedings initiated by the European Economic Community Commission in the Court of Justice; and if he will make a statement.
§ Mr. BrookeThe Government do not accept the Commission's contention that the sixth VAT directive requires the imposition of VAT on the goods and services covered by the infraction proceedings. If they did, however, the revenue yield would depend on the rate imposed.