§ Mr. CashTo ask the Chancellor of the Exchequer what is his policy on the elimination of duty-free sales under the EC treaty or the Single European Act; and if he will make a statement.
§ Mr. RyderThe European Commission has made it clear that as a consequence of the completion of the single market, duty-free shopping for intra-Community travellers should cease. However, the Commission has not yet come forward with firm proposals for this.
The Government understand the Commission's view that it makes no sense to grant a tax concession for crossing a frontier when fiscal frontiers have been removed. Equally, the Government are aware of the economic significance of the duty-free trade and will examine all the arguments carefully before a decision is reached.