§ Mr. Nicholas WintertonTo ask the Chancellor of the Exchequer if he will make a statement on his policy on the harmonisation of taxes on beers, wines and spirits; and what is his assessment of the revenues lost to the Treasury through such smuggling in the latest year for which figures are available. [32542]
§ Mr. Heathcoat-Amory[holding answer 12 June 1996]Member states should be free to set excise duty rates at the level they feel are appropriate to their own232W particular circumstances, subject only to the agreed minimum rates. This was the basis of the agreement reached by all member states at ECOFIN on 19 October 1992. Nevertheless, the Government consider that there should be movement towards the approximation of excise duty rates across the EU, and that some steps in the direction of the UK pattern of indirect taxation makes sense. The mechanism for achieving this aim is through the Commission's biennial review of the minimum rates of excise duty, the next such review being due by the end of 1996.
Customs does not, at present, have a reliable estimate of the extent of cross-border smuggling of alcoholic products. It is liaising with the drinks industry with the aim of achieving an objective measurement.
§ Mr. Nicholas WintertonTo ask the Chancellor of the Exchequer what estimate he has made of(a) the total value and (b) the total volume of the cross-border smuggling of (i) beer, (ii) wines and (iii) spirits in the latest year for which figures are available; and what value of smuggled goods was seized in that year. [32540]
§ Mr. Heathcoat-Amory[holding answer 12 June 1996]Customs does not at present have a reliable estimate of the extent of either the total volume or total value of cross-border smuggling of alcoholic products. It is liaising with the drinks and tobacco industry with the aim of achieving an objective measurement. The revenue value of intra-EU smuggling detected by excise verification officers in the year ending 31 March 1996 is shown in the table:
Category Revenue value detected (£ million) Beer 3.090 Wine 0.664 Spirits 4.312
§ Mr. WintertonTo ask the Chancellor of the Exchequer what recent representations he has received relating to the impact upon British companies and traders of cross-border smuggling of beers, wines and spirits; and what response he intends to make to those representations. [32541]
§ Mr. Heathcoat-Amory[holding answer 12 June 1996]The Chancellor receives many representations from the trade and other interested parties about the cross-border smuggling of alcoholic drinks and its consequential impact on legitimate UK trade. These representations are taken into account by the Chancellor when making his Budget decisions.
Customs has deployed excise verification officers to seek out and prosecute those engaged in smuggling activity. In addition, in November 1995 Customs, together with the various associations representing the industries concerned, formed an excise alliance for the purpose of developing a co-operative approach leading to the detection of smugglers and fraudsters, and to exchange high level information on excise smuggling and fraud matters.
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