To ask the Chancellor of the Exchequer what response he has made to the European Union’s decision to implement the World Customs Organisation’s ruling that mobility scooters should be classified as leisure vehicles for tax purposes; and if he will make a statement. (172130)

Officials from HM Revenue and Customs are advising the industry on the options available to pursue a change to the customs classification. The officials have written to the European Commission asking to have the classification referred back to the World Customs Organisation. The submission also included a request for an import duty suspension to be introduced while the scooters remain classified in a heading that attracts import duty.

Classification for import duty purposes under the Customs regime has no direct bearing on VAT liability, which is determined by VAT law. For VAT purposes, mobility scooters may qualify for the zero-rating that applies when disabled people purchase certain ‘carriages’ or other equipment specifically designed to meet their needs. The Government have no plans to change the scope of this VAT relief.