§ Q18. Mr. Teddy Taylor
asked the Prime Minister if she will raise at the next meeting of the European Council the decision of the European Economic Community Commission on initiating proceedings in the European Court of Justice against the United Kingdom on its zero rating of goods and services in respect of value added tax; and if she will make a statement.
§ The Prime Minister
No. This is a legal dispute between the Commission and the United Kingdom. It is not a matter in which the European Council has any locus. This legal dispute should not be confused with recent tax harmonisation proposals submitted by the Commission to the Council, on which the Government's position is clear.