To ask the Chancellor of the Exchequer what recent proposals have been made by the European Commission concerning the rate of value added tax levied on books; and if he will make a statement.

At the 24 June meeting of ECOFIN, agreement was reached that member states which apply zero rates of VAT will be able to retain them, during a transitional period to December 1996, provided that they were in force on 1 January 1991 and are in accordance with Community law. The current zero rating of books is, therefore, safeguarded until at least December 1996, without prejudice to the position thereafter.