asked the Chancellor of the Exchequer if current EEC discussions on tax harmonisation include proposals to harmonise the scope of value added tax.

There have been preliminary discussions on proposals made by the EEC Commission in a draft Sixth Directive on VAT.

asked the Chancellor of the Exchequer why VAT is charged on postage and packing when goods are returns to customers after servicing, the service charge also being subject to VAT.

The supply of the service of packing and delivering goods is liable to VAT at the standard rate. A charge made for such a supply by a taxable person bears tax accordingly.