§ Lord Pearson of Rannochasked Her Majesty's Government:
Whether they intend to agree to Chapter 10 (Taxation) of the Special Arrangement obtained by Malta for her accession to the European Union; and, if so, whether that would lead to the United Kingdom imposing VAT on food and medicines by 1 January 2010. [HL1513]
§ Lord McIntosh of HaringeyThe terms of Malta's accession agreement will make no difference to the UK's right to retain its zero rates. This right is enshrined in the provisions of the EC VAT Sixth Directive, which can only be altered with the unanimous agreement of all member states.