§ Mr. Butcher
To ask the Chancellor of the Exchequer if he will conduct a study of the revenue effect of a reduction in car taxation to the EC average taking into account the effect on numbers of cars sold as a result of such a reduction and assuming that interest rates remain the same as at 24 July.
§ Mrs. Gillian Shephard
No. The tax treatment of cars varies considerably across member states. There are wide differences in what is taxed and how. A detailed study would be required at considerable cost.