HC Deb 08 June 1989 vol 154 cc226-7W
Mr. Sims

To ask the Chancellor of the Duchy of Lancaster following the Greek Government's removal of the regulatory and other discriminatory taxes on spirits as scheduled on 1 January, what subsequent action Her Majesty's Government have taken to press for the elimination of the remaining discrimination against, inter alia, Scotch whisky as compared with ouzo and brandy.

Mr. Alan Clark

The European Commission's infringement proceedings against the Greek Government are still in progress in the European Court of Justice and, as before, we are keeping a close watch on developments. In addition the Government took steps earlier this year to re-register with Greek authorities the United Kingdom's continued concern about VAT discrimination against, inter alia, whisky along with the United Kingdom's general dissatisfaction with the current taxation structure applied to spirituous beverages in Greece.

Mr. Sims

To ask the Chancellor of the Duchy of Lancaster what was the outcome of the recent talks in Lisbon between the European Community Commission and the Portuguese Government concerning the discrimination in rates of alcohol tax and value added tax on spirits; and what further steps Her Majesty's Government are taking to press for the removal of the discrimination.

Mr. Alan Clark

At Her Majesty's Government's request infraction proceedings have been initiated against the Portuguese by the Commission who are still awaiting a formal response. As a result of talks held in November between the Portuguese authorities and Commission services, however, the Portuguese have taken steps to equalise tax on all alcohol, both imported and domestically produced, at 500 escudos per litre.

Mr. Sims

To ask the Chancellor of the Duchy of Lancaster whether the Italian Government's proposed requirement with effect from 1 July for all bottled alcoholic beverages include on their label an anti-litter statement and identification of the container's raw material is compatible with the European Community Commission proposal currently under discussion which would prescribe two mandatory European Community symbols for refillable and recyclable beverage containers, respectively; if he will seek suspension or postponement of the requirement for United Kingdom alcoholic beverages exports to Italy pending agreement on the European Community directive; and if he will make a statement.

Mr. Alan Clark

If introduced, the Italian Government's requirement would pre-empt the discussions which are currently taking place between member states and the Commission on the Commission's proposed amendment to the Beverage Containers Directive EC 185/339, which would require labelling as to material, recyclability and refillability. I understand that Italy has declared its intention formally to notify the Commission of the proposed new law. My Department is keeping in touch with the Commission to ensure that the notification procedure, which would allow member states' observations during a standstill period, is gone through before the law can be introduced. The United Kingdom's position is that new national legislation in this area is inappropriate while discussions are continuing on a Community regime.

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