Accountancy Age has reported what has been known for some time, that Tesco is moving its Jersey CD and DVD operation to Switzerland.
The UK put significant pressure on Jersey to push this unethical trade out of its territory (with only partial success as Jersey is allowing Play.com to stay). It's now doing the same to Guernsey as the Budget notes report (sorry, link not available right now).
If the UK is to honour what Jersey ha done it has a duty to now close the new abuse of the VAT loophole from Switzerland. There is only one way to honour that. The UK now has to close this practice down entirely. If the limit for exempting imports from VAT was cut to about £7 this whole abuse would be stopped.
The government has promised to respond to the threat of a judicial review on this issue by 5 April. Let's hope the response is positive, unambiguous and a clear move to stop tax abuse. We really should expect nothing else. What is going on is an abuse of the market. And the EU requires action of that is taking place.
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I think that Tesco should be applauded. The Value Added Tax is highly regessive which means that the poor pay a higher share of VAT than the rich. Also Tesco is a retailer at which working class people shop. So what’s wrong if working class people pay less tax?
Stefan
I presume you know how illogical your argument is. Of course VAT is regressive – but the solution is not to be found in destroying UK jobs, the UK music industry or undermining the rule of law and respect for the democratic process.
To put it another way – your comment is opportunistic an wrong.
Richard