§ Mr. McCrindleasked the Chancellor of the Exchequer if he will make a statement on the present position on the harmonisation of tobacco taxation policy.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 10th February 1977; Vol. 925, c. 806], gave the following information:
The Government are committed to the implementation of the EEC First Directive on Tobacco Taxation by 1st January 105W 1978. This commitment, which was accepted by the Government of the day on Accession, requires the United Kingdom to charge duty on cigarettes partly as a proportion of the retail value, and partly as a specific duty on each cigarette irrespective of size. The Finance Act 1976 was the first stage in the implementation of this Directive. The only proposals for the harmonisation of tobacco duty currently under active consideration in Brussels are contained in the draft Fifth Directive, which provides for the second stage of the harmonisation of duty on cigarettes. It lays down limits for the proportion of the specific duty per cigarette in the total tax burden.