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Lorry import tariffs to be cut in no-deal Brexit

Lorry Image copyright Getty Images

The government has cut a tariff on lorries imported into the UK in the event of a no-deal Brexit.

The move comes after the Road Haulage Association (RHA) pushed the government to axe the tariff altogether.

Instead, for the first year after the UK leaves the EU, the government will reduce the tariff from 22% to 10%.

Lorries sold to the UK are currently not subject to a tariff, something the RHA says should continue in the event of a no-deal Brexit.

RHA chief executive Richard Burnett said: “The original proposal of a 22% tariff on HGVs coming in from the EU was unbelievable.

“A 10% tariff will still be crippling and will severely damage the lives and livelihoods of those responsible for operating the very industry that keeps the UK fit to live in.”

The move is one of three amendments to the proposed tariff regime – originally published in March – that will come into force if the UK leaves the EU without a deal.

The Department for International Trade said the amendments include changes to tariffs on bioethanol imported into the UK.

Also some clothing shipped into the UK will be taxed at between 8% and 12%.

Both revisions are aimed at protecting domestic bioethanol and clothing producers from cheaper imports.

The Department for International Trade said that under the temporary tariff regime, 88% of imports into the UK are eligible to be tariff-free for 12 months, up from the 87% it announced in March.

‘Difficulty’

Commenting on the change to lorry import taxes, Meredith Crowley, an economist specialising in international trade from the University of Cambridge, said the UK’s heavy goods vehicle sector is facing “some difficulty with Brexit”.

Image copyright Getty Images

She said: “They were trying to have the same high tariffs on imports from the European Union but that could also raise prices for purchasers of heavy goods vehicles.

“These vehicles are really expensive so £85,000 £100,000.”

Meanwhile, a government paper on Monday found UK and EU firms would be faced with a “a significant new and ongoing administrative burden” in the event of a no-deal Brexit.

It found large firms importing and exporting at scale would need to fill in forms taking one hour 45 minutes on average and cost £28 per form for each load imported.

Source: bbc.co.uk

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