§ Mr. Teddy Taylorasked the Chancellor of the Exchequer why Her Majesty's Government agreed to the harmonising of EEC turnover taxes and excise duties in the Single European Act; and what steps he is taking to achieve this objective.
§ Mr. BrookeThe Government have not agreed to the harmonisation of turnover taxes and excise duties in the Single European Act. The relevant article provides that indirect taxes should be harmonised
to the extent that such harmonisation is necessary to ensure the establishment and operation of the internal market".The question of how far harmonisation of indirect taxes is needed in order to remove barriers to trade is currently being studied by an ad hoc group of senior officials set up by the Council of Economic and Finance Ministers in January. Decisions on what action may be necessary to complete the internal market will be taken in the light of the group's report.