GSD: VAT Is A “Red Line” for Gibraltar Business
The GSD says that Gibraltar’s business community considers the introduction of VAT as a “red line” in the EU Treaty Negotiation. The party says this has been highlighted in an article in the latest issue of the Chamber of Commerce business magazine and similar concerns have been expressed directly to the GSD by the Gibraltar Federation of Small Businesses.
Roy Clinton the GSD Shadow Minster for Public Finance and Small Businesses stated the following:
“It was highlighted in last year’s leaked outline framework agreement that there was an option to join a bespoke customs union under the envisaged EU Treaty. Within the outline suggestions on mobility of goods was the need to implement ‘relevant EU customs, excise and VAT legislation’.
“The Chamber of Commerce’s members in the retail and wholesale sector are per the magazine article ‘overwhelmingly against’ the introduction of VAT. This is a view that was also communicated to the GSD by the GFSB last year. The Chamber article stresses that any increase in costs, especially in the aftermath of COVID, would further damage business and risk local jobs if price competitiveness with the introduction of VAT were to be eroded.
“It is thus incumbent on the Government that it listens to the business community as a whole in the continuing EU Treaty negotiations and not just a select few businessmen who are lobbying for their own particular interests.
“Patience is fast running out and the Government needs to reassure the business community as to its intentions on VAT and not hide behind the Treaty Liaison Advisory Group who are sworn to silence. The wider business community needs certainty on this important issue which will affect them directly.”
