§ Sir Teddy TaylorTo ask the Chancellor of the Exchequer if he will make a statement setting out the nature and extent of the obligations taken on by the United Kingdom in respect of its zero rates for VAT on 24 June 1991, and on 27 June 1992.
§ Sir John CopeAt the meeting of the Economic and Finance Ministers Council on 24 June 1991 the member states including the United Kingdom agreed that under transitional arrangements member states which at 1 January 1991 applied for zero rates for VAT to particular goods and services in accordance with the provisions of Community law in force, would have the option of retaining them.
The transitional period will continue at least until the end of the 1996 and thereafter until there is unanimous agreement on the definitive (origin) VAT system to operate after that. The United Kingdom has made clear that such agreement will not be forthcoming unless, among other conditions, our right to continue with our zero rates is fully protected.
No obligations were taken on by the United Kingdom in respect of its zero rates for VAT on 27 June 1992.