HC Deb 29 March 1994 vol 240 c636W
Mr. Gill

To ask the Chancellor of the Exchequer what assessment he has made of the effect on the balance of payments and Treasury receipts resulting from lower liquor duties in mainland Europe.

Sir John Cope

The effect of cross-border shopping on the balance of payments is difficult to assess. It takes place for a variety of reasons. Duty differentials encourage personal imports, but are only one factor. Duty free shopping arrangements are another. The overall effect on the balance of payments will depend on where cross-border shopping is taking place and the country of origin of the product purchased as well as the amounts purchased. Receipts of duty on alcoholic drink held up well in 1993.

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