COUNCILLOR Mackenzie-Williams (You Say, Friday, August 13) asks for comment on his recent experience on a trip to Holland.

First, I share his surprise that he was asked to pay a three per cent encashment fee on travellers cheques already denominated in euros.

I suggest he takes this up with the company that issued the cheques to ask for an explanation.

Secondly, "duty-free" products officially ceased for people travelling within the EU several years ago.

Only people going on to a country outside the EU still have the right to buy at duty-free prices, and this right applies whether they are EU or non-EU citizens.

The specific rate of tax he would have had to pay in Holland as an EU citizen would be the Dutch rate of tax, which would vary by product.

Generally such taxes, certainly on cigarettes and alcohol, are much lower than the UK.

There is pressure in some quarters to "harmonise" taxes to the same levels across the EU: Conservatives fundamentally disagree with this.

We believe that tax levels should remain the responsibility of individual Member State Governments - even though under the present UK Government they only ever seem to go up!

PHILIP BUSHILL-MATTHEWS (MEP),

Conservative Office, Sansome Place, Worcester.