§ Mr. Austin Mitchellasked the Prime Minister whether she agreed at the recent summit meeting of European Economic Community Heads of Government that customs duties and agricultural levies charged on imports into the United Kingdom would henceforth be regarded as money belonging to the European Economic Community; and if she will include in the Official Report a table showing (a) forecast receipts under this heading for 1984, (b) the forecast gross contribution, including these receipts, in 1984, on the basis of 1 per cent., 1.4 per cent. and 1.6 per cent. value added tax contribution, respectively, and (c) the rebate which would be payable under each of the alternatives discussed at the meeting.
§ The Prime MinisterCustoms duties and agricultural levies have been own resources of the Community since 1970. No changes were made to this at the recent European Council.
The current forecast of payments by the United Kingdom under the 1984 Community budget of levies and duties and VAT is £1,419 million and £1,716 mill ion respectively. The yield from 1 per cent., 1.4 per cent. and 1.6 per cent. of the forecast VAT base of the United Kingdom would be £1,721 million, £2,410 million and £2,754 million respectively. The actual VAT call-up within the ceiling, and hence our gross contribution, would depend among other things on the size of the Community budget.
Discussion at the recent European Council concerned a system for correcting imbalances based on 1983 figures for gross domestic product and relative prosperity in a Community of 12. The amounts of relief which such a system would produce in future years would depend on the system's parameters and on economic developments.