§ Mr. Teddy Taylorasked the Chancellor of the Exchequer what are the areas of application of value added tax liability in respect of which the European Commission is seeking to persuade the European Court that the zero rate applied by the United Kingdom is in conflict with European law; and if he will make a statement.
§ Mr. BrookeThe EC Commission has challenged the United Kingdom's zero-rating of certain goods and services in the following categories:
in so far as they are not for clearly defined social reasons or for the benefit of the final consumer.
- Animal feeding stuffs.
- Sewerage services and water.
- News services.
- Fuel and power.
- Construction and buildings.
- Protective clothing and footwear.