§ Mr. Martenasked the Chancellor of the Exchequer if he will make a statement on the latest meeting of EEC Finance Ministers, in particular on value added tax.
§ Mr. Robert Sheldon, pursuant to his reply [Official Report, 28th March 1977; Vol. 929, c. 38], gave the following information:
The Council of Ministers has now reached agreement on a common position with regard to the draft Sixth Directive on VAT. The directive remains subject to examination by the European Parliament and to formal adoption thereafter by the Council of Ministers.
It is proposed that the directive should come into operation on 1st January 1978; this is dependent on completion of the procedures just mentioned in time to allow parliamentary approval for the consequential national legislation.
The position agreed at the Fiscal Council is on the lines outlined in the written reply given to my hon. Friend the Member for Ilford, North (Mrs. Miller) on 26th January, and agreement has now been reached on the proposal mentioned 113W in paragraph 4 of that reply under which a member State would be free to alter its turnover limit for the registration of small businesses so as to maintain the value of the limit in real terms.