Yet more evidence that the Channel Islands’ VAT abuse is having serious impact on UK small business has turned up on this blog:
I think the abuse from companies trading from the channel islands is a much larger problem than the general population realise.
With e-commerce competing with every high street within the UK, ignorance to resolve this problem is drastically effecting the economy on a large scale. Not only are the govt losing millions in tax revenue, but it prevents a barrier for entrepreneurship. New small businesses can’t compete with a 20% difference in price to stores just a click away from the same customer pool. Even the larger businesses with deep pockets have had to set up on the channel islands such as Sainsbury’s to compete, which will only broaden the gap.
Unless this problem is addressed sooner rather than later, small retailers based in mainland UK will close at an alarming rate, or new businesses will seek to open from abroad. Either way the UK will continue to lose tax revenue and as a result increase taxes will occur elsewhere as well as further cuts. I hope that something is done about this sooner rather than later.
Yet more evidence that those opposing this abuse are the true friends of fair trade.