§ 57. Mr. SpearingTo ask the Chancellor of the Exchequer if he will make a statement concerning the latest proposals of the Commission of the European Economic Communities concerning the reinstatement of excise duties and value added tax.
§ Mr. LilleyI assume that the hon. Gentleman is referring to the European Commission's proposals for the approximation of indirect tax rates. No new proposals have been put forward since the original package published in August 1987. The Government remain of the view that tax approximation is unnecessary for the completion of the single market. It could not be introduced without the unanimous consent of all member states. At an informal meeting of Economic and Finance Ministers in September my right hon. Friend the Chancellor of the Exchequer presented a paper setting out an alternative, market based approach to completing the single market. Copies have been placed in the Library. The paper remains on the table for further consideration alongside the Commission's proposals. The Commission is currently re-examining its proposals in the light of the many serious reservations expressed by member states.