To ask the Chancellor of the Exchequer what are the current rates of value-added tax on (a) electricity and (b) gas in each European Community country; and whether it is intended to maintain a zero rate in the United Kingdom for fuels after 1992.

[holding answer 15 January 1990]: Based on the latest available information the current rates are as follows:

Per cent.
Country	Gas	Electricity
Belgium	17	17
Denmark	22	22
France	5·5	5·5
Germany	14	14
Greece	2—	2—
Ireland	10	5
Italy	9	9
Luxembourg	6	6
Netherlands	18·5	18·5
Portugal	8 (6)	1 8 (6)
Spain	12	12
United Kingdom	0	0
1 Lower rates apply in autonomous regions of the Azores and Madeira Archipelagoes.
2 Information not available.

To comply with the European Court of Justice ruling of 21 June 1988, VAT at the standard rate will apply in the United Kingdom to fuel and power supplied to businesses from 1 July 1990.In the context of the Commission's indirect tax proposals for the single market, the Government have repeatedly made it clear that they intend to maintain the zero rate of VAT for domestic fuel and power. As changes to EC law require unanimous agreement, the United Kingdom's position is safeguarded.