§ Mr. Michael BrownTo ask the Chancellor of the Exchequer (1) if his Department will be supporting the clauses within the European Community draft directives on the approximation of taxes on cigarettes, to subject all tobacco products to excise levy; and if he will support 59W amendments to exempt any specific categories of tobacco products which are currently subject to United Kingdom excise tax;
(2) what is his policy towards the implementation of the European Community draft directives on the approximation of taxes on cigarettes and manufactured tobacco other than cigarettes which would result in a reduction of the retail price of cigarettes and other tobacco products.
§ Mr. Lilley[holding answer 2 December 1988]: We have made it clear that we do not consider the European Commission's proposals for the approximation of indirect taxes to be necessary for the completion of the internal market. As such changes require the unanimous agreement of the member states before becoming law, there is no question of these proposals being forced upon us.