HC Deb 05 August 1971 vol 822 cc399-401W
Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether he will publish in the OFFICIAL REPORT a list of taxes which will be affected by the harmonisation requirements of Article 99 of the Treaty of Rome if Great Britain enters the European Economic Community.

Mr. Higgins

Article 99 does not itself require the harmonisation of any taxes. The article provides for the Commission to submit harmonisation proposals to the Council, and that the Council shall decide on the proposals unanimously. To date the only substantive decisions taken by the Council for harmonisation of taxes under Article 99 relate to the introduction of a value-added tax by all Member States. Five of the Member States have

Mr. Maurice Macmillan

Following is the information:

already introduced the tax and Italy intends to do so. As yet, no decisions to harmonise either the coverage or the rates of the value-added tax have been taken.

Mr. David Clark

asked the Chancelor of the Exchequer what estimate he has made of the effect of free capital movement within the European Economic Community on the 13 per cent. interest rates for house buyers which currently are applicable in France and the current rate of 8½per cent. applicable in the United Kingdom.

Mr. Higgins

The Community's present arrangements do not call for total freedom of all capital movements, and I would not expect the transactions which the United Kingdom would undertake to liberalise in the transitional period to affect building society finances significantly. As the hon. Member will recall the answer I gave him on 15th July indicated it is generally accepted that existing legislation excludes lending on security by building societies outside the United Kingdom.—[Vol. 821, c.146.]

Mr. Marten

asked the Chancellor of the Exchequer what are now the comparative maximum estimated growth rates for 1972 for Great Britain and the European Economic Community.

Mr. Higgins

As my right hon. Friend said in his statement on 19th July, the increase in United Kingdom national output between the first halves of 1971 and 1972 is expected to be 4 to 4½ per cent. On growth rates in the E.E.C., I would refer my hon. Friend to the reply he received from the Chancellor of the Duchy of Lancaster on 26th July.

Mr. Skeet

asked the Chancellor of the Exchequer if he will state the value-added

RATES OF VALUE ADDED TAX
Germany Holland France Belgium Luxembourg
Gas … … … … 11 4 17.6 6 5
Electricity … … … 11 4 17.6 14 5
Gasoline … … … … 11 4 17.6 14 5
Gas oil … … … …
Fuel oils … … … … 11 4 17.6 18 5
Water … … … … 5.5 4 7.5 6 5

No detailed information is available about the coverage of the proposed V.A.T. in Italy.

Mr. Skeet

asked the Chancellor of the Exchequer if he will state the extent of the taxes levied on the proceeds following the sale of house properties in each of the member States of the European Economic Community.

Mr. Higgins

I will write to my hon. Friend.