Following Minister Joe Bossano’s interview with GBC, the GSD says the “suggestion of import duties that might mirror EU VAT does raise the question as to increased costs for the consumer and decrease in competitiveness."

A statement from the GSD follows below:

Gibraltar’s business community will no doubt be relieved to hear from Sir Joe Bossano in an interview with  GBC that VAT would not be introduced and that joining the Customs Union per se was not on the cards.  However the suggestion of import duties that might mirror EU VAT does raise the question as to increased  costs for the consumer and decrease in competitiveness.  

Roy Clinton the GSD Shadow Minster for Public Finance and Small Businesses stated the following:  

“It will be a great reassurance to the business community in Gibraltar to hear from Sir Joe Bossano that there  is no intention to introduce VAT, this was a matter on which members of the Chamber and the GFSB needed  clarity.  

However Sir Joe then went onto suggest that some form of import duty to mirror EU VAT might be on the  cards. This cost would necessarily be passed onto the consumer and raises the question as to how this might  affect prices in Gibraltar. At a time when inflation is 4.3 % this sort of additional price pressure would not be  welcomed by consumers.  

Sir Joe intimates that a cost/benefit analysis to businesses needs to be undertaken as to whether fluidity would  compensate higher costs via import duty. This exercise of consultation needs to be undertaken urgently and  shared if it has not already been done.”