§ Mr. Simpson
To ask the Chancellor of the Exchequer what offset agreements in respect of harmonisation of VAT rates were agreed to in the Council of Ministers as part of the agreement on Scotch whisky; and what effect the VAT agreement will have on the maintenance of each existing zero rate.
§ Sir John Cope
[holding answer 8 July 1992]: I refer the hon. Member to the reply my right hon. Friend the Chancellor gave to my hon. Friend the Member for Chelmsford (Mr. Burns) on 3 July 1992, at columns 755–56.
All the United Kingdom's existing zero rates are fully safeguarded by the sixth VAT directive. That protection is reinforced by a provision in the draft VAT rates and structures directive.