§ Lord Wallace of Saltaireasked Her Majesty's Government:
What is the estimated current loss to the Exchequer of the concession to allow duty-free purchases to British citizens travelling within the European Union and what additional revenue it anticipates will accrue from the planned abolition of this concession.
§ Lord McIntosh of HaringeyNo estimates are made of the revenue forgone to the Exchequer as a result of duty and tax-free shopping. Customs and Excise have undertaken work to assess the revenue consequences following abolition of intra-EU duty and tax free shopping scheduled for 30 June 1999. Their preliminary analysis indicates that abolition may yield an extra £100 million per year in revenue to the UK Exchequer, but this estimate will continue to be reviewed in the light of further information.