§ Mr. Nigel JonesTo ask the Chancellor of the Exchequer what assessment he has made of the impact on(a) revenues and (b) jobs caused by the duty differential between the United Kingdom and the rest of the European Community. [93140]
398W
§ Ms HewittDuty differentials are not the only factor involved in the legal and illegal cross-border trade in excise goods between the UK and other EU member states. Other factors involved include pre-tax price, manufacturers' and retailers' margins, and transportation costs. It is not possible to isolate the effect of duty differentials alone.
HM Customs and Excise estimates of revenue lost through cross-border shopping and smuggling are set out in their technical paper deposited in the House of Commons Library on 19 November 1998. HM Customs and Excise does not have any assessment of the impact of such activities on UK employment.