§ 40. Mr. Michael McNair-Wilsonasked the Chancellor of the Exchequer what study he has made of the practice regarding taxation of bloodstock sales in other EEC countries.
§ Mr. BiffenParticular care has been taken to ascertain practices in France and 329W Ireland, where the bloodstock industries are on a scale comparable with that in the United Kingdom and where VAT is currently applied in a way that results in the United Kingdom industry being placed at a competitive disadvantage. Details are given below of VAT rates applicable in both France and Ireland and also in the other EEC member States (where, however, there is a very much lower degree of competition with the United Kingdom industry).
Rate per cent. Belgium 16 (Standard) Denmark 20.25 (Standard) France* 7 (Reduced) Germany 6.5 (Reduced) Ireland† Exempt Italy 6 (Reduced) Luxembourg 10 (Standard) Netherlands 18 (Standard) United Kingdom 15 (Standard) Notes: * VAT is chargeable on standard values approximate to the carcass value. The European Commission regards this practice as contrary to the Sixth Directive (Article 11.B.2). † Exemption granted during a transitional period under Article 28.3(B) of the Sixth Directive.