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Value Added Tax

Volume 927: debated on Tuesday 1 March 1977

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asked t Chancellor of the Exchequer (1) whether he will direct Her Majesty's Customs and Excise not to implement the proposal by the EEC Council of Ministers to impose VAT on international travel within the Community as from 1st January 1978 ,(2) whether he will seek to exempt the United Kingdom from the proposal by the EEC Council of Ministers to impose VAT on international travel within the Community, as from 1st January 1978; and whether he will make a statement.

As announced in my right hon. Friend's reply to a Question by my hon. Friend the Member for Ilford, North (Mrs. Miller) on 26th January substantial progress has been made towards an agreement on the draft Sixth Directive on VAT. However, some points, including the ultimate decision on international travel, remain a matter for discussion. In any event, however, there is no question of changing on 1st January 1978 the existing United Kingdom zero ratings covering international travel.