HC Deb 12 March 1998 vol 308 cc314-5W
Dr. Ladyman

To ask the Chancellor of the Exchequer what is his policy in respect of the duty regime which will apply following the planned abolition of duty free sales in the EU. [33923]

Dawn Primarolo

Operators currently dealing in intra-EU duty free sales will, following abolition, be required to account for duty and tax on the sales they make in accordance with the principles laid down in the relevant EC directives. Customs and Excise are in discussion with UK trade interests to explore the practicalities of implementing this duty paid regime.

Dr. Ladyman

To ask the Chancellor of the Exchequer what progress has been made towards tax harmonisation in the EU; and what account will be taken of that progress in any decision to abolish duty free in the EU in 1999. [33924]

Dawn Primarolo

The mechanism for progressing harmonisation of excise duty rates on alcohol and tobacco is through the Commission's biennial reviews of the minimum rates of excise duty. Their current reports are overdue.

The decision to end intra-EU duty-free sales has already been taken by the Council of Finance Minister, in 1991. The harmonisation of duties and taxes was not a factor in that decision.

Dr. Ladyman

To ask the Chancellor of the Exchequer if he will list the current position of each member state of the EU in respect of commissioning an impact assessment of the effect on employment of abolishing duty free sales in the EU.[33925]

Dawn Primarolo

There was a brief discussion of the matter among Economic and Finance Ministers on 9 March, but I regret that the information in the form sought by my hon. Friend is not available.