HC Deb 23 October 1967 vol 751 cc389-90W
Mr. Alfred Morris

asked the Chancellor of the Exchequer whether the Selective Employment Tax could be retained in the event of British membership of the European Economic Community.

Mr. Callaghan

I would refer my hon. Friend to the answers I gave the hon. Member for Cirencester and Tewkesbury (Mr. Ridley) on 13th June.—[Vol. 748, c. 278–9.]

Mr. Alfred Morris

asked the Chancellor of the Exchequer what directives have been promulgated by the European Economic Community for the introduction of a common system of taxation on value added; when this system will come into force; by what approximate date national laws must be introduced to bring in the system; and what consideration Her Majesty's Government is giving to this matter in relation to its application for membership of the European Economic Community.

Mr. Callaghan

Two directives, dated 11th April, 1967, have been promulgated by the European Economic Community; the first on the harmonisation of legislation of member States concerning turnover taxes, the second on the structure and procedure for applying the common system of tax on value added. In each member state, legislation to introduce this system is to be adopted as rapidly as possible, so that it can come into force at a date to be fixed by the member state, but not later than 1st January 1970. As to Her Majesty's Government's position in relation to its application for membership of the European Economic Community, I would refer my hon. Friend to the statement made by my right hon. Friend the Prime Minister on 8th May, 1967.—[Vol. 746, c. 1089.]