§ Sir John StanleyTo ask the Chancellor of the Exchequer whether, under the Maastricht treaty, decisions to establish uniform rates of value added tax and uniform VAT exemptions would be taken by unanimous decision or by qualified majority voting.
§ Mr. LamontEuropean Community decisions relating to the rates and structure of VAT are covered by the provisions of article 99 of the treaty of Rome, and as such are subject to a unanimous decision by member states.
This position is not affected by the draft Maastricht treaty.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer if he will list all grants and subsidies received by farmers upon which VAT is chargeable; and if he will make a statement.
§ Sir John Cope[holding answer 10 July 1992]Some grants to farmers can be regarded as consideration for a supply of services and hence taxable because the recipient undertakes to refrain from doing something such as producing milk. Farmers receive grants and subsidies from a number of Government Departments, but no central list is maintained by any one Department and such information could be obtained only at disproportionate cost.