HC Deb 24 January 1997 vol 288 cc789-91W
Mr. Milburn

To ask the Chancellor of the Exchequer, pursuant to his Answer of 13 January,Offical Report, cols 21–22 relating to taxation, if he will provide equivalent figures for (a)1978–79 and (b) 1992–93. [11449]

Mr. Jack

[holding answer 17 January 1997]: Estimates are given in the tables. For 1978–79 married couples are counted as one taxpayer and their incomes are combined; for 1992–93 husbands and wives are counted separately.

Mr. Oppenheim

[holding answer 21 January 1997]: In July 1996 the European Commission produced a suggested programme for a common system of VAT, or "definitive system", to apply throughout the European Community. This programme contains no specific legislative proposals, but outlines a series of steps which the Commission proposes should be taken toward the creation of a common system. An explanatory memorandum on the Commission's proposals was submitted to Parliament last September.

Any change to the EC VAT system requires the unanimous agreement of member states, and the current transitional regime continues automatically in the absence of an agreement upon a definitive regime. Discussion of the programme within the EC has so far been very limited, and no decisions have been made about the programme itself or about the future shape of the VAT system. Contrary to recent assertions in the press, the Government have agreed no changes, whether from 2005 or any other date.

Mr. Porter

To ask the Chancellor of the Exchequer if he will list the goods and services to be subject to a VAT rate above 0 per cent. after 2005; what exemptions from VAT will be abolished; when he agreed such changes with his EU counterparts; and if he will make a statement. [11104]

Mr. Oppenheim

[holding answer 21 January 1997]: I have agreed no such changes. The current EC VAT regime—including its provisions for the United Kingdom's zero rates, and those in respect of exemptions—cannot be changed without the unanimous agreement of member states, and so will automatically continue to apply in the absence of any agreement to amend it.