§ Baroness Macleod of Borveasked Her Majesty's Government:
Whether, to encourage the sale of motor vehicles made in Britain, they will withdraw the car tax from vehicles which are made or assembled and sold in this country.
§ Lord CockfieldHer Majesty's Government could not discriminate against imported vehicles in the way proposed by my noble friend. Car tax would effectively become an import duty instead of an internal tax levied equally on all chargeable vehicles registered for road use in the United Kingdom. As such it would be unlawful under the EC Treaty.