Asked by: Lee Barron (Labour - Corby and East Northamptonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to help protect British businesses in (a) the hobby sector and (b) other sectors from (i) TEMU and (ii) other cheap import companies.
Answered by James Murray - Exchequer Secretary (HM Treasury)
Under the UK’s Low Value Imports Regime, consignments valued below £135 can be imported into the UK without incurring customs duty. This is a common provision in customs regimes around the world designed to avoid disproportionate burdens on low value trade. All overseas retailers that sell goods from abroad to UK consumers are subject to VAT at the same rates as domestic businesses. We keep the operation and impact of our policies relating to imports under review. The Government is committed to working in partnership with businesses to deliver sustained economic growth.
Asked by: Lee Barron (Labour - Corby and East Northamptonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment with the Secretary of State for Business and Trade of the potential impact of withdrawing temporary easement for wine on business operations and the UK supply chain.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume. The reforms aimed to modernise and simplify the system, to prioritise public health and incentivise consumption of lower strength products.
To help the wine industry adapt to the new duty system, the current, temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
The Government publishes tax information and impact notes (TIINs) for tax policy changes. The summary of impacts from the changes to alcohol duty announced at Spring Budget 2023, including the wine easement, can be found here: Reform of Alcohol Duty Rates and Reliefs - GOV.UK
Asked by: Lee Barron (Labour - Corby and East Northamptonshire)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the cost to businesses of administering the excise duty system following the end of the temporary easement on 1 February 2025.
Answered by James Murray - Exchequer Secretary (HM Treasury)
In August 2023 the Government introduced reforms to alcohol duty so that products are taxed in proportion to their alcoholic strength, not volume. The reforms aimed to modernise and simplify the system, to prioritise public health and incentivise consumption of lower strength products.
To help the wine industry adapt to the new duty system, the current, temporary duty easement was introduced as a transitional measure, which was intended to allow time for wine producers to adapt to calculating duty based on alcohol by volume.
By the planned end-date of 31 January 2025, the wine industry will have had over two years to adapt to the new strength-based system.
The Government publishes tax information and impact notes (TIINs) for tax policy changes. The summary of impacts from the changes to alcohol duty announced at Spring Budget 2023, including the wine easement, can be found here: Reform of Alcohol Duty Rates and Reliefs - GOV.UK