Caobisco Condemns EC Oils and Fats tax Proposal

The proposed European Community (EC) levy on oils and fats has been criticised by CAOBISCO, the association of EC biscuit, chocolate and confectionery manufacturers.

In a letter to the President of the Council of Ministers, M. Eyskens, the association said the tax would cost the EC biscuit, cake, chocolate and confectionery industries almost 200 mln European currency units per year.

The tax also was contrary to the spirit of the General Agreement on Tariffs and Trade (GATT) and could prompt U.S. Retaliatory measures on EC exports, CAOBISCO said.

In a parallel move the British Biscuit, Cake, Chocolate and Confectionery Alliance has written to U.K. Chancellor of the Exchequer Nigel Lawson urging him to oppose the levy.

President Charles Gillett said the tax was extending the Commission’s powers by allowing it to set levels of consumer taxation, an area previously reserved for national treasuries.