Posted on 11/11/2006 8:44:29 PM PST by bruinbirdman
British shoppers will soon be able to buy cut-price alcohol and cigarettes from the Continent without leaving home, as a result of an extraordinary legal test case that threatens to blow a multi-billion pound hole in the Treasury's coffers.
The European Court of Justice is expected to rule next week that goods can be bought in other EU states and delivered to the door while only the duty levied in the country of origin is paid. This is often a fraction of that charged in Britain.
If, as appears likely, the court rubber-stamps a previous adjudication by its advocate general, shoppers will be free to use the internet or mail order companies to find the best bargains around Europe and have them shipped home for their own consumption.
The potential savings are huge: 200 cigarettes purchased in Latvia cost only £7.20, a saving of about £43, while several European countries charge no duty on wine.
Businesses across Europe are gearing up for the changes, but the British Retail Confederation warns that UK businesses will lose unless action is taken to harmonise duty rates across the Continent.
The Treasury earns £15 billion a year from excise duty on alcohol and cigarettes — enough to pay the running costs of the Home Office, the Foreign Office and the Department for Culture, Media and Sport.
Tax experts believe the ruling, due on November 23, will hasten moves towards single rates of tax across the EU and hit ferry companies, which rely heavily on "booze cruises".
Legal advice drawn up by the accountants Ernst & Young says: "The judgment… is likely to allow individuals to purchase alcohol over the internet or by telephone from other EU member states and to have their purchases delivered to them at home, while still paying low duty rates in the country of purchase.
"Retailers and distributors in EU member states with low alcohol duty rates are likely to be able to increase direct sales of alcohol to customers."
The dramatic change in British tax policy hinges on an attempt by a Dutch group to have wine they had bought in France shipped home, without physically accompanying their purchases. The Dutch government levied alcohol duty on the wine, but after a legal challenge the European court's advocate-general, Francis Jacob, found it had been wrong to do so.
A number of European governments, including Britain, have urged the court to reject the adjudication. But in 80 per cent of cases the court upholds the advocate-general's decision, and Charles Meechan, an Ernst & Young director, said: "All the evidence is that the ruling will not go the UK's way."
Britain has one of the highest excise rates in Europe and shoppers are expected to rush to take advantage of the ruling, which cannot be appealed against and would take immediate effect. At present, Britons can bring alcohol and tobacco with them into the country if they can show it is for personal consumption.
Jeremy Beadle, the chief executive of the Wine and Spirits Trade Association, said the case could have a serious impact. "The key disincentive until now has been that you have to travel with the goods."
HM Revenue and Customs refused to comment on the case but the Euro-MP Charles Tannock, the Tory spokesman on the duty-free trade, said: "This is going to be a huge embarrassment to Gordon Brown and his tax-raising attempts. It will also increase pressure on member states to harmonise excise duty. If we are going to have a single market this must be permitted."
Christian news and commentary at: sacredscoop.com ...
Another *Note*: This thread has absolutely nothing to do with Bush, the election, or the war on terror. Seems to me there's, oh...a couple of thousand threads to choose from for that. It's almost as if you're neurotically spamming threads...(mods?)
I was gonna post on topic (just got back from the UK/EU where yes, I shopped some duty free), but not if this is where it's heading.
If it costs roughly fifty pounds for a carton of cigarettes, I am surprised we haven't heard of any "cigarettes for votes" scandals.
$ 95 US for a carton of butts ??? Almost 10 bucks a pack ! Man oh man !
Frightening, isn't it?
Pull the bug out of your butt Cedex!!! yopu didn't haVE to be a jerk about it!!!
Was just having a little fun with an off topic- you din';t have to come along & piss all over it- a simple 'please keep on topic would have sufficed' but nope- yas just had to sday somethign personal and negative didn't ya? Good goin!
And what do you mean by telling me what this thread is about and what I can and can not respond with? The topic struck me that those who hate the U.S- the liberal left in Britain- are now getting cheaper liquor- Tell ya hwat CDex- I'll run all my posts by you for approval from now on just to be sure it meets you demands- Not! you want ot discuss the cheaper taxes- have at it- Seems your post was nothing but a complaint- totally off topic & neurotically spammy- but I'll tell ya what- I won't cry to the mods- I'll let it ride- you'rwe welcome
Thanks for the very informative and interesting post .
I haven't been to England in over 20 years , but when I was last there the price of cigs and booze , while higher than the USA , wasn't out of sight . I smoked at the time and always brought back Brit cigs for myself and for others . Booze ? All I drank in England was the beer , and I love it dearly , but even I would cust back if prices became excessively expensive .
Japanese cigarettes are still taxed relatively low . One cam buy a pack for about $ 2 either in the shops or in one of the myriad vending machines lining street corners and storefronts across the land . Alcohol taxes are reasonable as well , but the tax on beer is a bit excessive . A case of Kirin for example will set you back $ 40 . It's probably less expensive the in states .
Keep in mind , the national sales tax is at 5% at present , and we expect an increase within the next two years to 8% . This tax is levied on every good and service inc. medicine , hospital bills , food ...nothing is exempt .
Oh, wait...there is one thing, since you insisted on bringing it up over the course of several rants. I just got back from a six week vacation (Britain, France, Germany and the Netherlands) and didn't encounter one case of anti-Americanism. Not one. Nada.
Now, is this because I'm just a regular who gets on OK with folks, and most people are pretty decent folks themselves, as we're all quite basically alike (esp. in the west ie., Canada, UK, EU, Scandinavia, etc.), OR...do you simply watch too much TV/spend too much time on the internet, and are completely convinced the entire planet hates Yanks, right down to the last citizen? If the latter's the case, perhaps you should travel the world and prove them otherwise, no?
In the meantime, I'm quite enjoying my duty free British Dunhill ciggies, though they were still quite expensive (but much tastier than Camels). Thanks for asking.
"I can tell you this tax business will make you weep."
Every month when I look at my pay statement I cry a lot!
Too bad I did not promise to leave the country if the Democrats took over the House and Senate. If I had. . . I'd be booking a flight back home (Alabama) for me and the family!!
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