§ Mr. Arthur Lewisasked the Chancellor of the Exchequer what action he proposes to take on the EEC directive on the harmonisation of VAT on transport; and to what extent he estimates this impost will raise fares and increase the cost of living when implemented in Great Britain.
§ Mr. Robert SheldonThere is no EEC directive on the harmonisation of VAT on transport. The draft Sixth Directive on VAT, which is still under discussion, contains proposals for the harmonisation of VAT systems within the Community; this would allow the continuation of the present zero-rating for passenger trans-port in this country.