WRITTEN QUESTION No. 1361/98 by Graham WATSON to the Commission. Insurance Premium Tax in UK
Date: 1998-04-27
Institutions: European Parliament, WATSON
Subjects: United Kingdom, VAT, insurance contract, insurance premium, restriction on competition, tax, tax harmonisation, tax system

22.2.1999

EN

Official Journal of the European Communities

C 50/29

Decision 94/381/EC (2) prohibits the feeding of protein derived from mammalian tissues to ruminant species.
Therefore, at present, fishmeal can be used in ruminant diets.

Following the international scientific conference on animal meal organised in Brussels, on 1 and 2 July 1997, by
the Parliament and the Commission under the aegis of the scientific steering committee of the Community, the
Commission launched a public consultation, on 14 November 1997, about the future of the Community(cid:146)s feed
legislation and, in particular, on a possible ban on the use of all animal protein in the feeding of ruminants, on the
grounds that these animals are herbivorous and therefore do not need animal protein in their diet.

This consultation aimed to provide an objective description of the present situation, and some considerations
about the possible consequences of adopting different approaches.

In order to guarantee its wider diffusion, the paper resulting from this consultation was available on the Internet
from 14 November 1997 and written comments were requested by 31 December 1997. A document summarising
the comments received on this consultation has now been finalised and is available on the Internet. The
Commission will now reflect on the measures necessary to give effect to the problems raised in the course of this
consultation.

(1) OJ L 62, 15.3.1993, as last amended by Directive 97/79/EC › OJ L 24, 30.1.1998.
(2) OJ L 172, 7.7.1994, as last amended by Decision 95/60/EC › OJ L 55, 11.3.1995.

(1999/C 50/038)

WRITTEN QUESTION P-1361/98

by Graham Watson (ELDR) to the Commission

(27 April 1998)

Subject: Insurance Premium Tax in UK

The increase of the Insurance Premium Tax in the UK, through the Finance Act 1997, causes a serious distortion
of competition and appears to be at variance with Community law, since motor insurance and high street
electrical sectors of industry are discriminated against in tax treatment.

What measures has the Commission taken, or will it take, to ensure that the prohibition of the selective higher rate
of Insurance Premium Tax by Article 33 of the EC(cid:146)s Sixth Directive will be respected by the British government
and will the Commission, in the frame of these measures, endeavour to respond to the complaints lodged by
various quarters within British industry during the period June-December 1996?

Answer given by Mr Monti on behalf of the Commission

(8 June 1998)

The Commission has received complaints concerning the increased insurance premium tax (IPT) rate applied to
travel agents and high street electrical retailers. The Commission has been in contact with the British authorities
and is still assessing the compatibility of a selective IPT rate with Article 92 of the EC Treaty.

As far as the question of compatibility of the IPT with the Sixth Council Directive 77/388/CCE of 17 May 1977 on
the harmonization of the laws of the Member States relating to turnover taxes › Common system of value added
tax: uniform basis of assessment (1) is concerned, it must be said that this tax does not seem to constitute a tax of
the kind prohibited by Article 33. In fact, this provision explicitly allows Member States to introduce or maintain
taxes on insurance.

(1) OJ L 145, 13.6.1977.