§ Mr. SimsTo ask the Secretary of State for Trade and Industry what further steps Her Majesty's Government have taken, or proposes to take, following the removal of excise tax discrimination in the spirits sector in Portugal, to press for the removal of the remaining value added tax discrimination.
§ Mr. RedwoodFollowing representations by the Government, the European Commission examined the compatibility of Portugal's VAT structure with EC law. The Commission has not found the system to be discriminatory, but it remains a matter of concern to the United Kingdom and my Department is preparing further observations on Portuguese VAT for the Commission to consider.