HC Deb 18 March 1997 vol 292 cc541-2W
Mr. Heathcoat-Amory

To ask the Chancellor of the Exchequer if, as part of the programme for a common system of VAT, he will agree to changing the status of the EC VAT Committee from an advisory committee to a regulatory committee with powers of implementation. [20075]

Mr. Oppenheim

The Government support limited reform of the VAT Committee with a view to improving its operation, but would oppose a change in its status to that of a regulatory Committee. The Government believe that unanimity in the Council should remain the basis for EC decisions on VAT matters.

Mr. Dykes

To ask the Chancellor of the Exchequer if he will list the steps taken in ECOFIN(a) to change the status of the EU VAT and Tax Committee following the Verona summit decision and (b) to create the provisional timetable for the European Commission's proposal for a common VAT system for member states. [20157]

Mr. Oppenheim

ECOFIN has taken no steps to change the status of the VAT Committee which was established by the sixth VAT directive in 1977. The informal Verona ECOFIN of April 1996 did, however, establish a new high-level working group on tax.

The European Commission's suggested programme for a "common system" for VAT to apply throughout the Community was presented to ECOFIN in October 1996, on a "take note" basis with no debate or discussion. There has been no other discussion or debate at ECOFIN about the suggested programme or its timetable.

Mr. Dykes

To ask the Chancellor of the Exchequer if the VAT and Tax Committee established by ECOFIN has completed the draft code of conduct on VAT harmonisation. [20158]

Mr. Oppenheim

The Verona informal ECOFIN of April 1996 established the high-level group on tax—the Monti group—to examine member states' tax systems and to consider issues of fiscal erosion. Monti recommended in a personal report to the Dublin European Council that the high-level group be continued in the form of a taxation policy group. This report was submitted to Parliament with an explanatory memorandum. The Dublin Council agreed to the continuation of the group and the taxation policy group met for the first time on 11 March 1997. The question of a code of conduct on unfair tax competition was raised but there are no proposals on the table. There is no code of conduct on VAT harmonisation.