§ Mr. Lathamasked the Chancellor of the Exchequer whether it remains the policy of Her Majesty's Government to oppose proposals to phase out zero-rating for value added tax purposes, such as those contained in the sixth directive on value added tax; and if he will make a statement.
§ Mr. HayhoeThe Government consider that the VAT zero-ratings at present in force in the United Kingdom are in accordance with the derogations allowed under the Community's VAT Directives. Amendment of the directives to phase out derogations of the United Kingdom and of other member states would require a formal proposal from the Commission, which would become operative only by the unanimous agreement of all member states.