§ Mrs. Ray MichieTo ask the Chancellor of the Exchequer what is the latest position regarding European Community proposals for imposing value added tax on goods and clothing sold in charity shops.
§ Mr. LilleyDiscussions on the Commission's proposals for the approximation of VAT rates are continuing in the Economic and Finance Council. The Government's position, which has been repeated on numerous occasions, is that we are not prepared to accept proposals which would restrict our ability to retain VAT zero rates. Our position is safeguarded because changes to EC tax law require unanimity.