Jersey is home to a number of companies that export goods which escape VAT because the Island is outside the European Union

THE Channel Islands’ lucrative fulfilment industry is coming under pressure from the UK government.

But the minister responsible for the sector in Jersey does not believe that the Island is the specific target of any new UK clampdown.

It has been claimed that the UK Treasury is upset because it is losing a potential £100 million a year in tax revenue from the £620 million worth of online business done in the islands.

Some of the industry leaders, including Play.com and Amazon, have offices and warehouses in Jersey which sell DVDs, CDs and computer games. They are able to exploit a tax loophole which means that items posted to the UK from Jersey costing less than £18 are not liable to VAT charges.

But Economic Development Minister Alan Maclean said: ‘I don’t think this relates specifically to Jersey. There was some pressure put on us in 2006 and 16 businesses were found to be using Jersey as a ‘‘postbox’’ and they were effectively shut down.’