GSD asks if Brexit deal will lead to increased costs for consumers

The GSD raised questions on the potential impact of a UK-EU treaty on consumers in Gibraltar following comments made by Sir Joe Bossano during a GBC interview.

In a statement, the party said businesses would welcome Sir Joe’s message that VAT would not be introduced and that joining the Customs Union was not on the cards.

But his suggestion of import duties that might mirror EU VAT raised questions as to increased costs for consumers and a decrease in competitiveness.

“It will be a great reassurance to the business community in Gibraltar to hear from Sir Joe Bossano that there is no intention to introduce VAT, this was a matter on which members of the Chamber and the GFSB needed clarity,” said Roy Clinton, the GSD shadow Minster for Public Finance and Small Businesses.

“However Sir Joe then went onto suggest that some form of import duty to mirror EU VAT might be on the cards.”

“This cost would necessarily be passed onto the consumer and raises the question as to how this might affect prices in Gibraltar.”

“At a time when inflation is 4.3 % this sort of additional price pressure would not be welcomed by consumers.”

“Sir Joe intimates that a cost/benefit analysis to businesses’ needs to be undertaken as to whether fluidity would compensate higher costs via import duty.”

“This exercise of consultation needs to be undertaken urgently and shared if it has not already been done.”