§ Mr. Denzil DaviesTo ask the Chancellor of the Exchequer if he will publish the terms of the agreement between Her Majesty's Customs and Excise and BAA whereby goods will be sold at Heathrow airport free of VAT.
§ Mr. Norman LamontThere is no agreement as such. Her Majesty's Customs and Excise are prepared to consider applications from any airport operator for VAT-free shopping facilities where it can be demonstrated to Customs' satisfaction that sales will be restricted to outbound passengers who will export their purchases. There is no question of goods being sold free of VAT for consumption at airports or to passengers on domestic flights.