Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

05 June 2018

Bloomberg: No-deal Brexit has same customs cost as ‘Max Fac,’ tax head says


The UK tax authority said leaving the European Union without a deal would cost the country’s businesses about 20 billion pounds a year, or about the same as one of the two proposals being considered by the government for a post-Brexit customs regime.

Businesses would have to file customs declarations in both a no-deal scenario and the so-called maximum facilitation that Prime Minister Theresa May’s inner Cabinet is analyzing, Jon Thompson, chief executive of HM Revenue & Customs, told lawmakers in Parliament on Tuesday. That makes the cost similar, he said, although his estimate for “max fac” doesn’t include any shipment delays.

Thompson said last month that the Brexit supporters’ preferred model would cost about six times more than the close customs partnership, which he estimated at no more than 3.4 billion pounds a year.

His calculation for maximum facilitation was based on each customs declaration costing 32.50 pounds, multiplied by 200 million -- the number of intra-EU consignments in 2016 -- and then doubled to account for businesses on both sides of the border. Another 3 billion pounds to 7 billion pounds is added for rules of origin requirements. [...]

Full article on Bloomberg



© Bloomberg


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment