§ Mr. Spearing
asked the Chancellor of the Exchequer if he will estimate the actual and percentage increase in the cost of fuel and power by the imposition of value added tax on the basis sought by the Commission of the European Economic Community.
§ Mr. Brooke
[pursuant to his reply, 21 October 1986]: The Government do not accept the Commission's contention that the sixth VAT directive requires the imposition of VAT on fuel and power. If they did, however, the increase in cost would depend on the rate imposed.