§ Mr. Wigginasked the Chancellor of the Exchequer if he will give his estimate of the effect on the balance of payments of the application of the 10 per cent. regulator to the common Customs tariff on imported tobacco products, the proceeds of which have to be remitted to the EEC.
§ Mr. Robert SheldonThe benefit to the balance of payments is expected to be negligible. The proceeds of the duties on imported tobacco products are not remitted to the EEC. The size of the United Kingdom contribution to the European Communities budget is determined as a percentage of the budget expenditure.
§ Mr. Wigginasked the Chancellor of the Exchequer if, in view of the fact that the use of the regulator, the impending increase in the Generalised System of Preferences, the consolidation of the regulator in the spring Budget and an increase in the common external tariff will mean that the tariff on tobacco products imported from developing countries will be at five different levels between December 1976 and July 1977, he will undertake not to bring forward any further measures which will affect the rate before the latter date.
§ Mr. Robert SheldonNo.
§ Mr. Wigginasked the Chancellor of the Exchequer if he will make a statement about his reasons for the use of the regulator to increase the tariff on tobacco product imports from countries such as Nicaragua, Cuba and the Philippines at a time when a reduction in this tariff barrier has been recommended under the General Agreement on Tariffs and Trade.
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§ Mr. Robert SheldonThe law governing the economic regulator applies a 10 per cent. surcharge to the total customs revenue duty on tobacco, irrespective of the origin of the product. It was not possible in this context, when emergency action was being taken, to consider the incidence of taxation as between products of different countries.