|
British sharp-shoppers who take cheap trips to the continent for tax-free cigarettes and alcohol could soon be able to get their 'duty free' goods from the comfort of their own home following a landmark court case.
Following a recent case where the European Court of Justice advocate general found that the Dutch government had been wrong to levy duty on wine going to a wine club owner in the Netherlands, it is thought that the European Court of Justice will now make a ruling agreeing with the advocate’s decision and moreover, rule that all goods can now be bought in one EU state and delivered to another with only the duty in the country of origin having to be paid.
If the predictions of the court's decision are correct, shoppers in Britain - where duties are among the highest in Europe - would be able to secure the best alcohol and tobacco deals via the internet or over the phone before having products shipped home without paying British duties.
The ruling rings with current Revenue & Customs regulations relating to quantities for ‘personal use’ – merely the method of carriage has changed - so next week it seems, will be an interesting time for the tax man, businesses and ferry operators alike.
The potential savings for consumers could be significant. In Latvia, for example, a carton of 200 cigarettes costs £7.20, compared to around £51 in the UK, most of which is tax. In addition, many European countries do not impose a levy on wine whereas in Britain shoppers are charged £1.30 per 75cl bottle.
As well as potentially wrecking wine and tobacco trading firms in the UK, Experts say the decision could lead to a loss of revenue to the government as high as £10 billion annually - equivalent to almost 3p on the basic rate of income tax.
|