§ Ms Primarolo
To ask the Chancellor of the Exchequer (1) what estimate he has made of the revenue from the imposition of the standard rate of VAT on public postal services in the United Kingdom;
(2) what plans he has to safeguard the VAT exemption on public postal services;
(3) if he will make a statement on the EU Commission's plans to review the VAT-exempt status given to public postal services.
§ Mr. Heathcoat-Amory
The exemption from VAT on the public postal services in 1994–95 was estimated to be £200 million.
VAT exemption on public postal services is safeguarded by the EC sixth VAT directive.
The Government are unable to make any comment until such time as the Commission makes known its plans or proposals with regard to the current VAT-exempt status of the public postal services.