HC Deb 23 October 1990 vol 178 cc103-4W
Mr. Cash

To ask the Chancellor of the Exchequer (1) what he estimates would be the net effect on excise duty, value added tax, corporation tax and national insurance revenues, at 1989 figures, of elimination of EC-related duty free sales; and to what extent that effect has taken into account possible substitution of duty free sales by duty paid sales;

(2) what would be the estimated effect on the United Kingdom balance of payments at current prices and current duty and value added tax rates in other EC member states of elimination of the duty-free system;

(3) what will be the effect on the United Kingdom balance of payments, at 1989 figures, of elimination of EC-related duty-free sales, taking into account the level of United Kingdom excise and value added tax rates by comparison with other EC member states and the likely effect of elimination of EC-related duty-free sales on United Kingdom demand for dutiable goods;

(4) by what percentage United Kingdom domestic demand for alcoholic, tobacco and perfume products is estimated to fall, at current prices, and on the basis of current EC member state duty and value added tax differentials if duty-free status were ended.

Mr. Ryder

No decision has been taken on the future of duty-free sales. The economic effects of abolition have been addressed by some outside observers. These effects are being considered within Her Majesty's Government.