§ LORD LEATHERLANDasked Her Majesty's Government:
Whether they can supply approximate information on the following points, on the assumption that Great Britain enters the E.E.C.—
- (a) what import tariffs, on goods exported from Britain to the E.E.C. countries, would be reduced by those countries, and to what extent and which are the main British industries involved;
- (b) what tariffs, now imposed by Britain on imports from E.E.C. countries, would be reduced by Britain, and to what extent, and which are the main British industries involved;
- (c) If Britain had to reduce her import tariff on motor vehicles imported from the E.E.C. countries, would these vehicles bear a tariff smaller than the purchase tax now charged on British manufactured vehicles, and, if so, what would be the competitive effect so far as the British industry is concerned.
§ LORD DRUMALBYNIf Great Britain enters the E.E.C., the ultimate effect, after whatever transitional period is agreed, will be the complete elimination of tariffs on trade passing between Great Britain and other member countries. The United Kingdom rate of import duty on passenger cars and light goods vehicles is at present 13 per cent. and is due to be reduced to 11 per cent. on January 1, 1972; that on heavy goods vehicles and buses is 22 per cent. Purchase tax, which is levied at the same rate on both imports and home-manufactured goods, is at the rate of 36⅔ per cent. on passenger 237WA cars and is not normally levied on light goods vehicles. No purchase tax is levied on heavy goods vehicles or buses.