§ Mr. Ian Campbellasked the Chancellor of the Exchequer if he is considering the effects of duty on Scotch whisky if the United Kingdom joins the European Economic Community, and its subsequent competitiveness in the substantial European market; and if he will make a statement.
88Wthe United Kingdom, in Northern Ireland and in the Republic of Ireland.
§ Mr. HigginsIf we join the European Economic Community the removal of protective duty barriers between member countries should increase the competitiveness of Scotch whisky in European markets.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he will publish a table of figures giving the difference in fuel oil taxes in each of the countries of the Six compared with the United Kingdom; and what changes he estimates would be required in United Kingdom rates in the event of the United Kingdom joining the Common Market in the light of the latest position there.
§ Mr. HigginsI will write to the hon. Member about fuel oil taxes in the E.E.C. At present member States of the E.E.C. are free to decide the rates of their individual taxes. The ultimate intention is to harmonise indirect taxation but no decision has been reached on the harmonisation of the duty on fuel oil.
§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that the Commission of the European Economic Community have proposed a common tax rate of 1 per cent. on company issues of new capital and a rate of 0.5 per cent. for capital transfers involving regrouping of companies; and how he envisages the application in Great Britain in the future of such a tax.
§ Mr. Patrick JenkinI am aware of these proposals, on which it will be necessary to consider legislation if we join the Community. It is not possible to estimate how the proposals would have affected the yield for a past period but the overall effect would probably not have been substantial. The proceeds of any such tax 89W would continue to accrue to national revenues.