§ Sir Dudley Smithasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government towards the European Community draft twelfth Council directive which proposes that value added tax input tax deductions on legitimate business expenses should be blocked; and if he will make a statement.
§ Mr. HayhoeThe Commission's draft has been circulated by Customs and Excise to interested trade bodies for comment. Until their responses, which are still being received, are evaluated, it would be premature to reach a decision. The Commission's proposals will eventually be discussed by the EC Council of Ministers and a decision to adopt the draft directive, or any amended version, would require unanimous agreement of all member states.