§ Mr. Simsasked the Chancellor of the Exchequer what steps he is taking following the Italian Parliament's failure to approve Decree Law No. 72 of 17 April despite their undertaking to remove discriminatory taxation against Scotch whisky, to which he referred in his Budget speech.
§ Mr. HayhoeI understand that Decree Law No. 72 of 17 April has been replaced by Decree Law No. 232 307W published on 15 June. The provisions of the latter are generally similar, but there is an important difference for United Kingdom exporters: the specified date for the second reduction—from 30 per cent. to 20 per cent—of the VAT rate on imported spirits is now 1 March 1986, not 1 January 1986. However, I am informed that the United Kingdom exporters concerned understand the reasons for this deferment.
I am watching developments carefully.