Import Duties For The Next Quarter Announced
- Import duty on vehicles remains at zero for July
- Commercial import duty waiver continues (except for certain excluded imports)
- New flat rate import duty of 10% on all personal imports (apart from foodstuffs)
- New duty, to boost local spending, applies to goods brought over land frontier and from online purchases
The Government has today announced the import duties that will apply in the next quarter.
In the past quarter, all duties have been reduced to zero other than in certain key areas.
For the next quarter, the position has been addressed in Parliament by the Chief Minister last Friday when he announced that the import duty on vehicles would remain at zero for the month of July but would revert to the position before March in August. In respect of other duties, the Chief Minister informed the heads of the Chamber of Commerce and Federation of Small Businesses today of the position that the Government will be taking.
The Chief Minister said: “Last Thursday in Parliament I outlined the measures we were introducing to support our business community after having consulted with CELAC which of course includes the Chamber of Commerce, the GFSB, and our Unions.
“I am grateful to them for the Presidents of the Chamber and the GFSB for having come to see me today to hear from me and the Minister for Commerce, Hon Vijay Daryanani, as we announce our Covid 19 measures on Import Duty.
“These measures, as indeed the entirety of the measures I announced last week are designed to firstly provide financial support to our businesses as they return to work in this difficult climate, and secondly, to stimulate and accelerate economic activity.
“We have already detailed the many measures supporting business and seeking to reduce or mitigate their costs for the next Quarter, and in some instances until the 31st March 2021. Businesses can now predict with some certainty their reduced outgoings over the coming months. This certainty will be good for businesses.
“Import Duty is one such cost that we have waived in its entirety over the past quarter with a few notable exceptions.
“I also announced last week that the current exemption in relation to motor vehicles will continue for a further month only. I am pleased that this had led to one fifth of all new vehicles being hybrid or electric.
“I am now pleased to announce that with effect from midnight tonight, the Import duty waiver will now continue for the entirety of the 3rd quarter for all commercial imports, with this waiver not applying to fuel, building materials, alcohol, tobacco and disposable single use plastic products where there is a higher duty regime is in place e.g. plastic plates and straws.
“However, in order to support the ‘BUY LOCAL’ campaign of Government, the Chamber and the GFSB, we are introducing a new Import Duty at a flat rate of 10% on ALL personal imports.
“This duty will be levied on all importations through the land frontier, as well as all online purchases delivered to Gibraltar by courier or by the Post Office. The land frontier includes personal imports via the Commercial Gate. This will apply at the airport too.
“This duty is intended to encourage our community to spend local, as our traders will not have to pay this duty, and we expect our local traders to pass on this benefit to our consumers to ensure that this measure increases sales and stimulates economic activity in Gibraltar.
“I must also mention that the 10% personal duty does not apply to any foodstuffs. In respect of fuel, building materials, tobacco and wines, spirits and malts, and disposable single use products such as plastic plates and straws the existing regime will continue.
“As a result of these new measures HM Customs will be actively checking vehicles and persons crossing into Gibraltar via the land frontier and airport. People are reminded that they should declare their dutiable goods to HM Customs Officers as they cross the border. This is not a voluntary duty but something that will be strictly enforced.
“I am also pleased to inform you that we are working with the Collector of Customs to facilitate the process of customs clearance to ensure people are able to efficiently and quickly pass through Customs when declaring imports. I hope to have further information on this in the coming 10 days.”
