§ Mr. HainTo ask the President of the Board of Trade what assessment he has made about value added tax exemption being removed following the possible privatisation of the Royal Mail; and if he will make a statement.
§ Mr. McLoughlin[holding answer 4 March 1994]: The EC sixth VAT directive requires the supply of services by the public postal services to be VAT exempt. A privatised Royal Mail would continue to provide public postal services. The Government are therefore satisfied that VAT would not be charged on stamps sold by a privatised Royal Mail.