Lorry import tariffs to be cut in no-deal Brexit
The government has made tariff cuts on imported lorries in the UK in case a no-deal Brexit deal is reached.
This move comes in light of the Road Haulage Association pushing the government to remove the tariff completely. The government, instead, decided that for one year after UK leaves the EU, the tariff will be reduced from 22% to 10%. Lorries that are sold in the UK are not liable to pay any taxes to the government, a scenario he hoped would continue post-Brexit.
The chief executive of the RHA, Richard Burnettpublicized has said that the original proposal of the 22% tariff will also prove crippling under EU rules. A 10% would also continue the grappling effects of taxation. It will continue to affect the livelihood.
The move is a part of a three-part amendment to the tariff regime which was publicized in match. It is due to come into effect if a no-deal Brexit takes place. The Department for International Trade has said that changes in tariffs levied on bioethanol which is imported is also part of the same scheme.
Clothing which is imported into the United Kingdom will also face taxation at 8% and 12%. These revisions are to protect domestic bioethanol and clothing importers from the business brought by cheaper imports. The Department of International Trade has said that under the temporary tariff regime, 88% of all imports into the UK can be made tariff-free for another year, which is one percent more than the statistics in March.
Meredith Crowley, the economist specializing in international trade from the University of Cambridge said that the heavy goods vehicle sector in the UK is facing the most difficulty on account of Brexit coming to what it has. She mentioned that the effort here has been to keep the higher tariffs imposed under European Union regulations, but it could unwittingly increase the prices for those who purchase heavy goods vehicles. These vehicles fall under the £85,000-£100,000 bracket.
On Monday, it was said that the UK and EU firms will be victim to more significant and new administrative burdens with a no-deal Brexit in sight. Big firms that are exporting and importing at a large scale will have to take out one hour and 45 minutes to fill out forms which will cost them £28 per form for each load imported.
