VAT relief end will ruin us, say flower exporters
Friday 11th November 2011, 2:30PM GMT.
Paul Ingrouille, of Guernsey Clematis, said the announcement that low value consignment relief was to be scrapped for the Channel Islands means another hurdle for the island’s traditional growing industry to overcome. (Picture by Steve Sarre, 1196768)
TRADITIONAL Guernsey flower growers are devastated by the ending of a relief that allowed goods under £15 to be shipped to the UK VAT free.
Guernsey growers have for years benefited from the agreement known as low value consignment relief.
But businesses were yesterday trying to determine whether they could survive following HM Treasury’s decision to scrap the arrangement in April.
Growers said the future of Guernsey’s flower export industry was now in jeopardy.
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the uk imports a lot of flowers from the eec and africa i hope they are subject to similar duty as i think its wrong to penalise our dependencies
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Hopefully the Dutch, with no doubt growing subsidies, will not benefit.
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Stop complaining and get on with the new laws,stand or fall by your product.
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This is another wholesome and famous Guernsey industry which we can be proud of and which should be nurtured and protected by our government.
Guernsey Clematis have done well to gain international recognition and deserve the support of the community as do all our horticultural exporters.
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Earlier this year I wrote: -
“Sadly, there appears to be a grave risk that VAT dispensation could be withdrawn from the very people it was designed to help because of the States’ failure to “regulate” the fulfilment industry within the spirit of the agreement with HMRC”.
As a consequence of HM Treasury’s recent decision to scrap the LVCR arrangements with the Channel Islands, I feel the States of Guernsey should now support any indigenous horticulture business that exports true Guernsey products to the UK and subsidise those firms to the extent of the additional VAT that would be payable.
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Well if your business only made money because of a tax advantage then yes, it was not a viable business and was propped up by the UK tax payer. Flower sellers in the UK don’t get a 20% break and they have never complained.
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“As a consequence of HM Treasury’s recent decision to scrap the LVCR arrangements with the Channel Islands, I feel the States of Guernsey should now support any indigenous horticulture business that exports true Guernsey products to the UK and subsidise those firms to the extent of the additional VAT that would be payable.”
I totally agree. The CI Governments encouraged this and legitimised it and they should now pay for the damage not the individual businesses.
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So go and do something else. Make and sell Guernsey butter and cheeses or something else. Export them at a high price (based upon quality). Oops, I forgot, everyone is bankrupt now and would not be able to afford them any more.
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