Page 1 of Import Tax Threat

Interesting report at the BBC showing the UK retailers` attempt to get the current duty free allowance of £18 to be reduced on CDs thereby putting us at the mercy of the high street chains to set prices (http://news.bbc.co.uk/1/hi/business/5190044.stm). By asking for this they seem to be providing Gordon Brown with the opportunity to reduce the general rate of the import duty allowance on all items which would include any other stuff such as DVDs which can be bought for less than £18 from outside the UK. Given that the reduction in competition would allow the high street retailers to up their prices Gordon would also benefit from the 17½% VAT payable on the increase. As the £18 limit was set decades ago maybe the off-shore retailers should be arguing that the limit should be raised in line with inflation rather than reduced.

If I remember rightly, it`s not actually worth the effort for HMCE for anything less than £18.

I`m actually surprised at Fopp and Music Zone. Those are the only record shops I`ve set foot in in years and they`re quite cheap. They can still f*** off with this nonsense though.

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This item was edited on Tuesday, 18th July 2006, 13:49

I doubt "off shore retailers" wouldnt really have any leg to stand on with regard to asking for anything as they are not likely to be paying UK tax and hence HMCR wouldnt care what they want

SHEPHERDS PIEEEEEEEE
Y.N.W.A
"TIGHT"

Import taxes are there,traditionally,to protect our manufacturing industries.
So,going back a few years,the likes of imported steel had all sorts of problems associated with it and massive duty rates.( I work in the freight industry and consult HMCE tariff on a daily basis ).
Of course,these days,we don`t have any manufacturing industries,so can taxes be used as a way of protecting service industries,like CD retailers ?
I suppose so.