§ Dr. MarekTo ask the Chancellor of the Exchequer if he will make a statement on the European Commission review of the scope of reduced VAT rates. [30687]
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§ Dawn Primarolo[holding answer 23 February 1998]: The European Commission's recent analysis of the present VAT rates structure and application of reduced VAT rates within the Community concludes that there is no significant distortion of competition brought about by the disparities in VAT rates between Member States. The report makes no formal proposals for revision of the current list of supplies of goods and services which may be subject to reduced rates.
§ Dr. MarekTo ask the Chancellor of the Exchequer if he will list occasions when he has raised the issue of a wider relief of VAT on energy saving materials with other member states of the EU. [30689]
§ Dawn Primarolo[holding answer 23 February 1998]: We have advised the Commission that we intend to explore the possibility of a reduced rate of VAT for energy saving measures carried out under certain Government-funded schemes and to explore the possibility of a reduced rate with wider application than European law presently allows.