§ 44. Mr. Whitlockasked the Chancellor of the Exchequer if it is Her Majesty's Government's intention to resist the proposal to operate the Common Market cigarette tax structure in the United Kingdom from the beginning of 1978.
§ Mr. Robert SheldonAdoption of the EEC structure for taxation of cigarettes is not a proposal still to be debated in Brussels, but a commitment which has bound the United Kingdom since our accession. When the EEC first directive on the harmonisation of the structure of tobacco taxation was adopted at the end of 1972, the previous Government asked for and obtained a five-year derogation, to allow time for our industry to adapt This derogation expires at the end of 1977 and a duty structure which conforms to the first directive must be introduced by 1st January 1978. in his last Budget my right hon. Friend took the first steps to phase in such a structure.