§ Mr. Deakinsasked the Chancellor of the Exchequer what is the policy of Her Majesty's Government towards the proposed harmonisation of indirect taxes and duties in connection with progress to a European Economic Community internal market; if it is envisaged that this process would involve the harmonisation of tax rates, value added tax exemptions and value added tax zero-rating; and if he will make a statement.
§ Mr. BrookeThe question how best to remove fiscal harriers to trade within the European Community is currently being studied by an ad hoc group of senior officials set up by the Council of Economic and Financial Ministers in January. They are considering both the Commission's proposals for completion of the internal market and possible alternatives which might achieve the same objective without harmonisation of indirect tax and590W duty rates. Decisions on what action may be necessary to complete the internal market will be taken in the light of the group's report.