§ Mr. DevlinTo ask the Secretary of State for Foreign and Commonwealth Affairs what negotiations have recently taken place within the European Economic Community on the position of value added tax on newspapers, periodicals and books; and whether any timetable has been agreed for such implementation.
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§ Mr. LilleyI have been asked to reply.
The European Commission's proposals for the "approximation" of VAT rates (which would, if adopted in their present form, require the United Kingdom to impose VAT on newspapers, periodicals and books) have not been discussed in Brussels. They will formally be presented to the Council of Economic and Finance Ministers at their meeting on 16 November. No decisions on the proposals are expected for some time.
§ Mr. DevlinTo ask the Secretary of State for Foreign and Commonwealth Affairs whether as part of the move to an internal market in the European Economic Community and the standardisation of value added tax rates on newspapers and periodicals, it is proposed to withdraw direct subsidies, grants and subsidised loans from newspapers in other European countries.
§ Mr. Alan ClarkI have been asked to reply.
National subsidies in Community member states are subject to the Community's states aid rules. I am aware of no plans to change these rules in respect of subsidies to newspapers.