VAT (Spectacles and Medical Goods)

HC Deb 23 February 1988 vol 128 cc140-1W

Mr. Baldry

To ask the Chancellor of the Exchequer if he will make a statement following the decision of the European Court of Justice in the proceedings taken against the United Kingdom over exemption from value added tax for spectacles and certain other goods supplied with medical care.

Mr. Lilley

This decision arises from the EC sixth directive on VAT, which was adopted in 1977. The Government will abide by the court's decision, but we need to study the judgment in detail, and consult interested trade bodies, before we can make any firm decisions about how to proceed. The United Kingdom has a treaty obligation to implement rulings from the European Court. Any amendment to United Kingdom law imposing taxation would have to be proposed to, and approved by, the House of Commons.