Question to the Foreign, Commonwealth & Development Office:

To ask His Majesty's Government, in regard to the UK–EU Agreement in Respect of Gibraltar: Joint Statement on 11 June, whether Gibraltar will have the right to set its own indirect tax rates.

Yes. Under this Agreement Gibraltar will continue to have freedom to set its own indirect tax rates on the services industries that are critical to its economy and ongoing prosperity. As part of this Agreement, the Government of Gibraltar has chosen to align the rate of its import duty on goods to the minimum rate of Value Added Tax applied in the EU.