Tax Stamp Regimes (Hansard, 2 February 2004)

§ Miss McIntosh
To ask the Chancellor of the Exchequer what recent discussions he has had with(a) countries which have abolished tax stamp regimes for whisky and other spirits, (b) countries which, after consideration, decided against introducing tax stamps and (c) countries which have tax stamps regimes; and what the outcome of those discussions was. [151694]

§ John Healey
Officials are in regular discussions with other countries on these matters. Tax stamps have been introduced in 40 different countries for a variety of reasons ranging from quality assurance to tackling fraud. Of eight European Union and accession countries where direct inquiries have been made, Denmark, Italy, Portugal, Spain, Poland and the Czech Republic have no plans to withdraw their schemes. Greece have withdrawn their 'quality' marker stamp and Belgium decided after consideration not to introduce tax stamps. Additionally, we are aware that the USA withdrew their tax stamps in 1985 when the 1954 law governing marks on spirits was repealed. The variety of reasons for introduction and withdrawal of tax stamp schemes highlight that direct comparisons between different countries' excise regimes cannot be easily drawn.

§ Miss McIntosh
To ask the Chancellor of the Exchequer what assessment he has made of the effect on free trade of tax stamps. [151695]

§ John Healey
Under formal European Union agreements (Council Directive 92/12/EEC) member states may require the use of tax stamps or other fiscal marks on products subject to excise duty. Any such scheme must ensure that the tax stamps do not create obstacles to the free movement of the products.

§ Miss McIntosh
To ask the Chancellor of the Exchequer what effect he expects the electronic control of movements systems which will be in place in the EU by 2009 to have on tax stamp regimes. [151696]

§ John Healey
The EU Excise Movement and Control System (EMCS) should be introduced by July 2009 and should reinforce the Government's strategy to tackle alcohol duty fraud. It will allow member states to monitor, in real time, the despatch and receipt of movements of alcohol, as well as tobacco and certain fuel products, between tax warehouses located in different member states. EMCS will be an improvement on the current paper-based system of Accompanying Administrative Documents. However, tax stamps are still likely to have a useful role to play in the detection of smuggled and diverted products after the full implementation of EMCS.