§ Mr. Simsasked the Chancellor of the Exchequer whether any safeguards have been included in European Community proposals on the respective treatment for tax purposes of different types of spirit to ensure that Scotch whisky is not placed at a competitive disadvantage as a result of subsidies granted to other imported spirits; and if he will make a statement.
§ Mr. BrookeThe EC proposals for harmonising the structure of the taxation of spirits would provide for the same rate of VAT to be charged on home-produced and imported spirits and for a single specific rate of excise duty. France would be permitted to retain for a limited period a reduced rate of excise duty on a quota of rum from the French Overseas Departments, and Denmark would be allowed a transitional period to abolish the ad valorem element in their excise duty on spirits.
The question of unfair competition by subsidies is outside the scope of these harmonisation proposals.