Last week the States department said it would be asking all businesses taking advantage of Low Value Consignment Relief through pick and pack ‘fulfilment’ companies to apply for a Regulation of Undertakings licence.
They will then have up to 12 months to phase out their Jersey-based operation altogether.
This includes Tesco, Asda and Boots, who sell their low-value CDs and DVDs through Jersey.
The UK group Forum of Private Business wants the UK government not only to lower the price below which goods are VAT exempt, from the current £18 to about £7, but also ask the European Union for a special dispensation to close the ‘loophole’ altogether.
They say a similar dispensation has already been granted to the Danish government.
