Remarks by the international trade secretary, Liam Fox, to the Commons International Trade Committee that the government will soon make a decision on scrapping import tariffs in the event of a no-deal Brexit, have met with a cautious response.
HMRC has estimated the administrative cost to business of preparing new import documentation at some £6.5bn.
Richard Asquith, global indirect tax specialist at tax technology company Avalara commented: ‘It is not just imports that will be hit by a no-deal Brexit. UK exporters to the EU will face an estimated £7bn in annual tariff charges on their sales. The administrative costs of the new declarations imposed by the EU will be an estimated £8bn per year. Any attempt to cut tariffs will also risk a backlash from developing nations which currently benefit from the tariff preference scheme for their exports to the UK. This advantage would be wiped out by a unilateral cut in UK tariffs.’
Remarks by the international trade secretary, Liam Fox, to the Commons International Trade Committee that the government will soon make a decision on scrapping import tariffs in the event of a no-deal Brexit, have met with a cautious response.
HMRC has estimated the administrative cost to business of preparing new import documentation at some £6.5bn.
Richard Asquith, global indirect tax specialist at tax technology company Avalara commented: ‘It is not just imports that will be hit by a no-deal Brexit. UK exporters to the EU will face an estimated £7bn in annual tariff charges on their sales. The administrative costs of the new declarations imposed by the EU will be an estimated £8bn per year. Any attempt to cut tariffs will also risk a backlash from developing nations which currently benefit from the tariff preference scheme for their exports to the UK. This advantage would be wiped out by a unilateral cut in UK tariffs.’
