§ Mr. LordTo ask the Chancellor of the Exchequer whether, following the meeting of European Community Finance Ministers on 24 June, it remains his intention to continue the existing VAT zero rating of printed matter.
§ Mrs. Gillian ShephardThe Economic and Finance Council has agreed that, for a transitional period to December 1996, member states that currently apply zero rates of VAT will be able to retain them provided they are in accordance with current Community law. United Kingdom zero rates are therefore safeguarded.
While this agreement is without prejudice to what happens after the transitional period, the Government have always stressed the importance of the existing United Kingdom zero rates and will continue to oppose any proposals which would not allow for the permanent retention of our ability to apply them.