THE UK Government has defended its decision not to cut the limit at which goods can be sent VAT-free from the Channel Islands to the lowest possible level.

Exchequer Secretary to the Treasury David Gauke MP (pictured) was asked during a House of Commons debate why the decision was made to move the Low Value Consignment Relief threshold down to £15 and not £9.

‘Some would have liked us to go further today by reducing the threshold to £9, which is the lowest level available under EU law, or even by withdrawing the relief from mail order goods altogether,’ he said.

‘I believe that exploring a more targeted approach to tackling exploitation of the relief with the European Commission is the best way forward, potentially allowing a better balance to be struck between the cost of enforcement of new rules by the Government and Royal Mail, and tackling the adverse impact of Low Value Consignment Relief on the Exchequer.’

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