HC Deb 14 July 1988 vol 137 c317W
Mr. Boyes

To ask the Chancellor of the Exchequer when he expects to respond to the European Court of Justice's ruling on value added tax with respect to all parts of the water industry; and if he will make a statement.

Mr. Lilley

As I informed the House on 21 June at column 957, the Government are obliged to comply with the Court's ruling that the zero-rating of water and sewerage services supplied to industry and a number of other goods and services is not permitted under European Community law. Supplies to domestic consumers will not be affected and no changes to the VAT law to give effect to the judgment will take effect before 1 April 1989. A consultation paper on this and other aspects of the judgment apart from non-domestic construction was issued by Her Majesty's Customs and Excise on 30 June and placed in the Library.