§ Mr. MichaelTo ask the Chancellor of the Exchequer what assessment he has made of the impact on voluntary organisations in England and Wales of any harmonisation of value added tax which would end the zero-rating concessions at present in force.
§ Mr. RyderThe Government recognise that the total VAT burden falling on the United Kingdom voluntary sector would have increased by about £500 million a year if the EC Commission's original proposals for tax approximation in the single market had been adopted. The Government therefore welcome the Commission's recent acceptance of zero-rating in certain circumstances after 1992 but is opposed to any proposals which interfere with our existing VAT reliefs.
§ Mr. MichaelTo ask the Chancellor of the Exchequer if he will list the charities or types of charity that might be adversely affected by the removal of current zero-rating concessions as a result of harmonisation within the EEC.
§ Mr. RyderThis information is not readily available. In any case, EC decisions in tax matters require the unanimous agreement of all member states and there is no question of the Government being forced to accept any proposals on VAT approximation which might adversely affect charities.