Government to work with EU to 'minimise impact' of new Brussels tax on small parcels entering Northern Ireland
The government says it will work with the EU to “minimise any potential impact” on Northern Ireland businesses and consumers from a new Brussels tax on small parcels.
Stormont has heard concerns in recent weeks about the new rules on packages, which are effective from July.
EU governments recently agreed to scrap an exemption on products with a value of less than €150 (£130) – meaning all e-commerce parcels entering the EU and NI will be subject to charges, regardless of their value.
Steve Aiken has branded the charge the ‘Alliance tax’, accusing his political rivals of championing the EU “at every opportunity”. The UUP MLA said it would cost the local economy over £700m per year – money which he argues could be spent on schools, policing and fixing Lough Neagh.
Alliance said his comments were “nonsensical” and accused him of “scaremongering” – arguing for a UK-EU customs union to address the issue.
Asked about Mr Aiken’s concerns, a government spokesperson told the News Letter: “We’re committed to ensuring goods eligible to move under the UK Carrier Scheme (UKCS) and the UK Internal Market Scheme (UKIMS) can continue to do so, protecting movements within the UK internal market from duty.
“We will continue to engage closely with industry and the EU to ensure any arrangements are implemented correctly and to minimise any potential impact on consumers and businesses in Northern Ireland.”
Companies must meet certain criteria to be accepted onto the UKCS and UKIMS schemes. Unionist parties say this is an unnecessary bureaucratic burden for firms, and does not address the fundamental problem of a trade border in the Irish Sea.
Officials have pointed to plans in the Budget to introduce comparable measures in the UK. The Chancellor announced in November that the government will remove the customs duty relief for low value imports – goods valued at £135 or less – and reform the way these goods are declared into the UK.
Rachel Reeves said the rules are to be introduced from March 2029 at the latest – which would have been in line with the EU’s original timescale. But Brussels now intends to introduce its measures in Northern Ireland by July this year.