§ Sir David PriceTo ask the Chancellor of the Exchequer what progress is being made towards the harmonisation of tobacco taxation within the European Community; and what effect this will have on the current level of tobacco taxation in the United Kingdom.
§ Mrs. Gillian Shephard[holding answer 16 May 1991]: I refer my hon. Friend to the answer my right hon. Friend the Chancellor or the Exchequer gave today to my hon. Friend the Member for Shrewsbury and Atcham (Mr. Conway).
There has been no agreement on tobacco tax rates and the Government view remains that centrally imposed tax harmonisation is unnecessary for completion of the single market. The United Kingdom remains free to set its own duty rates.