§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his policy on the harmonisation of(a) value added tax and (b) other indirect taxes in the European Union; and if he will make a statement. [13531]
§ Dawn Primarolo[holding answer 30 October 1997]: The Government, while supportive of efforts to simplify and modernise the current European Community VAT system, is opposed to further unnecessary harmonisation of VAT at the Community level. With regard to the other indirect taxes which are the subject of EC-wide legislation (the excise duties on alcohol and alcoholic beverages, tobacco products and mineral oils), the Government believes that Member States should be free to set these excise duty rates at the levels they feel are appropriate to their own particular circumstances, subject only to the agreed minimum rates. Nevertheless, the Government considers that there should be movement towards the approximation of these excise duty rates across the EC and that some steps in the direction of the UK pattern of indirect taxation make sense.