§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will, on the basis of past experience of permissions granted on applications received, estimate the amount of transfer of capital which will result from Britons purchasing houses and villas in the South of France, Italy and the countries of the Six on or by the middle of the transitional period after British entry into the European Economic Community; and how this is likely to affect Great Britain's balance of payments and sterling reserves.
§ Mr. HigginsThere would be some cost to the reserves but past applications do not provide a reliable basis for an estimate.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer why he will not advise the negotiators for entry into the European Economic Community that Great Britain cannot support the proposals of the Six on the subject of taxation of tobacco, cigarettes and cigars, etc.
§ Mr. HigginsIt would be premature to formulate United Kingdom views on draft proposals which have not yet been considered by the E.E.C. Council of Ministers.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that, in the European Economic Community, 371W life insurance premiums are taxed; to what extent, on any known terms of entry into the European Economic Community, Great Britain would have to introduce such a tax; and whether he proposes to introduce life insurance premium tax.
§ Mr. HigginsSome Member States of the European Economic Community apply special indirect taxes to insurance premiums, but until such time as there is harmonisation of indirect taxation throughout the Community, Member States are free individually to decide questions of tax coverage. My right hon. Friend described his proposals for taxation in his Budget Statement.