UK Chancellor to target fulfilment?

Tuesday 22nd March 2011, 3:00PM GMT.

George Osborne’s plans could lead to job losses in the Island. Picture: Ian Nicholson/PA Wire

THE Island’s internet mail order industry will be keeping a close eye on tomorrow’s UK budget.

The UK Chancellor’s plans for the financial year ahead will be unveiled in the House of Commons from 12.30 pm.

But there has been much speculation that George Osborne will change the rules that have benefitted many Channel Islands-based companies that ship items such as CDs, flowers, contact lenses and vitamins to England.

At the moment, any item worth less than £18 escapes VAT if it is imported from outside of the European Union.

The tax rule, called Low Value Consignment Relief, was introduced by the EU in 1983 because it was assumed that the cost of collecting the VAT would not be worth the revenue raised.

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