§ 78. Mr. Teddy TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the reduction in taxation revenue in the event of the proposals for harmonised duties on drink and tobacco, as proposed by the Commission, being implemented; and if he will make a statement.
§ Mr. LilleyGiven the very large changes in taxation that the Commission's proposals would require, any estimates are subject to wide margins of error. In addition, the Government have made it clear on numerous occasions that they do not consider tax approximation to be necessary for the completion of the internal market, and implementation of the Commission's proposals would require unanimous agreement of the member states. With those qualifications, the latest estimate of the revenue loss in a full year from adoption of the Commission's proposals on drink and tobacco is some £3.9 billion.