Alliance and nationalists need to explain how new EU tax on parcels entering NI is fair - UUP

Steve Aiken claims that up to 25% of parcels entering the province could be slapped with the Brussels charge, which will apply here under the Windsor Framework.

The UUP MLA has branded it the ‘Alliance tax’, because of the party’s support for the post-Brexit deal and its backing for the intent behind the new tax.

The European Union is set to remove duty relief for small parcels (valued at or under €150) from July, and has brought proposals to introduce a €2 handling fee from 1 November this year. Currently, consignments valued at or below €150 imported into the EU from overseas sellers benefit from customs duty relief.

However, Brussels wants to end that to curb the sale of cheap goods sent from non-EU countries directly to EU consumers – including in Northern Ireland. The UK government has looked at a similar scheme, with a consultation closing earlier this year.

Lord Livermore, the financial secretary to the Treasury, has written to Stormont’s finance committee on the matter. He said the UK government is currently working with the EU “to understand the detail of their proposals” – and that the government “remains committed to supporting businesses to move goods between Great Britain and Northern Ireland”.

He said officials estimate that between 75 to 85 per cent of all parcels moved between Great Britain and Northern Ireland do so using either the UK Carrier Scheme or the UK Internal Market Scheme. He did not provide a breakdown on the percentage of remaining parcels would be caught by the new tax.

Steve Aiken says that means that anywhere up to 25% of parcels entering Northern Ireland from the rest of the UK will face “the EU's parcel tax, aka the Alliance Tax”.

“As previously reported by the UUP, this fee will be on a flat rate of €2 for 25% on all parcels being delivered in Northern Ireland. The additional handling fee, per parcel, hasn't been defined yet. Although within the EU, a fee of €3 is being widely discussed.

"At the very least we can now expect, for 25% of all parcels coming into Northern Ireland, we'll be paying €5 per parcel. This is in marked contrast to the 'understanding' that the Northern Ireland Office has previously made that these charges will make a minimal impact. For Alliance, those rigorous implementors, who refuse to ever challenge EU regulations, we look forward to hearing from then, on how being charged 5 Euro, under their Alliance Tax, is in any way equitable.

“For Alliance, those rigorous implementors, who refuse to ever challenge EU regulations, we look forward to hearing from them on how being charged €5, under their Alliance Tax, is in any way equitable.

“If we had accurate HMRC trade data beyond it is 'tens of millions of parcels' we could then make an accurate assessment of how much the Alliance Tax will cost us. But like many of these issues, there is no information beyond that it will mean we will be paying millions in EU duty and administration fee's, a compulsory tax that the rest of the United Kingdom won't be paying"

At the finance committee on Wednesday, DUP MLA Brian Kingston said the matter which will effect everyone in Northern Ireland – describing it as “an affront”.

Sinn Fein, Alliance, SDLP and PBP MLAs rejected a DUP proposal, backed by the UUP, to write to the Treasury expressing support for their policy of attempting to “minimise any potential impact on consumers and businesses in Northern Ireland”. Instead, MLAs voted to write to a House of Lords committee without giving a position, and asking to be kept abreast.

Alliance MLA Eoin Tennyson defended the intention of the EU’s proposals, saying it is “actually to discourage consumers from purchasing small parcels from sites like Temu and Shein – often from China – and it's intended to support our local businesses and protect them from competition from abroad”.