Steve Aiken: We have Alliance's much-loved Windsor Framework to blame for incoming parcel tax

The retailers have argued that overseas online sellers such as Shein, Temu, and AliExpress benefit from an unfair advantage that allows them to send small parcels worth less than £135 to the UK without paying import duties.

Anyone who has buyers of the latest fast fashion or low priced consumer goods in their homes will be aware of the numerous parcels, nearly weekly, arriving at their doors. In England, Scotland and Wales all budding ‘Emily in Paris’ fashionistas will be deeply disappointed – in 2029.

It can be argued this parcel tax (and an additional admin charge) that the Chancellor has committed to bring in by then will protect our small high street shops and retailers. It may well do. But that is not the argument that we have here.

That is because of the Windsor Framework and as Northern Ireland is part of the EU single market, the catchily named Council Regulation (EU) 2026/382 of February 11, 2026 amending Regulation (EC) No 1186/2009 applies to us.

We have foreshortened that name to the ‘Alliance Tax’ because it has the support of all the ‘faithful implementors’ in that party and others who, regardless of the impact on all of us consumers, want to see it introduced.

It will be imposed on July 1 this year; although France has got ahead of the game, and now charges €2.50 – per article, not parcel – and an administration fee (anywhere from €2 upwards). So why haven’t we been told how it affects us?

Good question, I first raised the issue in January, and was asked, indeed fact checked, to see whether my assertions of costs and implication where right. I said the revenue raised alone could be close to €100m from NI.

I was, at first, told that HMRC didn’t recognise the figures, indeed the same response came to this newspaper. Further asking/prodding of NIO, Cabinet Office, HMRC revealed nothing; however, in Brussels of all places, we were informed that the tax was coming.

The next piece of information was given to the House of Lords, by HM Treasury – not to the most misnamed committee in Stormont, the Windsor Framework Democratic Scrutiny Committee. That, for the record, was because the Sinn Fein and Alliance majority on the committee refused to ask.

The Treasury stated to the House of Lords that the Alliance Tax would, possibly, only apply to those parcels that came from outside GB, and therefore a mere 20% would be in scope for the tax. Further analysis has indicated that this may be in the region of 15-20 million parcels coming into Northern Ireland (yes, that’s right) – and this duty and administration charge – the extra cost that added to each transaction to pay for the new EU digital borders organisation will apply from July 1 this year.

That, by my maths, if we take the lower figure, is €67.5 million going to HMRC. Not only do we have the imposition of the Irish Sea border to contend with, we also are going to be charged for the very ‘privilege’ of doing so. They do, after all, have to find a way to pay for all the costs somehow.

I asked Hilary Benn directly what he’s doing about this. I have asked, again directly, the relevant figures in the Cabinet Office, the UK EU Reps in Brussels the same question.

Sadly, the only openness we have received was in Brussels from EU and Irish officials, whose view, to paraphrase, was that as a matter of good faith and as UK/EU talks on SPS/Carbon Trading and Youth Movement were going into the negotiation tunnel, we’re just going to have to suck the tax up as the faithful implementors we are expected to be.

We have asked what derogations our government is going to apply, and at least holding off the Alliance Tax until it is implemented across the rest of the United Kingdom. It’s now one month out, and the answer we have had as political representatives is none. At least M&S is allowed to be more clued in than we are.

Steve Aiken is UUP MLA for South Antrim