UK consumers benefit from one of the world's smallest import duty burdens, a new study by accountancy group UHY Hacker Young has revealed.
UHY Hacker Young studied the customs duties levied by 18 economies as a percentage of each economy's size. It found that the UK charges import taxes equal to 0.11 percent of its gross domestic product (GDP), the lowest of any country in the study. This compares with a global average of 0.47 percent.
On average, the major European Union (EU) economies surveyed raised proportionally the least in customs duties, at just 0.13 percent of their GDPs. Countries that are part of the North American Free Trade Agreement (the US, Canada, and Mexico), levy, on average, a sum equivalent to 0.2 percent of their GDPs in customs levies.
Matthew Hodgson, Partner at UHY Hacker Young, said: "Consumers in the UK are getting a good deal as a result of the low import duty burden on goods from abroad, and businesses of course also benefit from the open competition that comes from being able to export freely across the whole of the EU."
However, Hodgson warned that if the UK leaves the EU, the customs duty burden could increase. "So much would depend on what the UK could achieve in establishing a whole new raft of bilateral trade agreements, should it vote to leave the EU. There need to be assurances that plans are in place to ensure that the possible departure of the UK from the EU does not risk the introduction of new trade barriers in Europe even temporarily," he said.
Hodgson added that the benefits to EU consumers of a low customs duty burden could be further enhanced if the EU is able to negotiate more effective trade agreements with non-EU trading partners. "Multilateral organisations like the Association of South East Asian Nations and Mercosur in Latin America are becoming increasingly important. It is vital that the EU makes progress in its negotiations on trade agreements if the UK's exports to these growing markets are not to be left at a significant disadvantage," he explained.

Aug 7, 2015
Source: Tax News