HL Deb 10 February 1994 vol 551 c137WA
Lord Stoddart of Swindon

asked Her Majesty's Government:

Whether future Parliaments will be able to repeal the imposition of VAT in respect of domestic fuel.

Lord Henley

Under the current EC agreements, once the supply of domestic fuel is made the subject of a positive rate of VAT, it may not subsequently be zero-rated.

At ECOFIN on 24 June 1991 member states agreed that, under transitional arrangements to last at least until the end of 1996, member states which at 1 January 1991 applied to certain goods and services zero-rates for VAT would have the option of retaining them.

However, the agreement, which is reflected in Council Directive 92/77/EEC, maintains the requirements of the key 1977 VAT Directive, in that it does not allow for the introduction, or reintroduction, of zero-rates.