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News
Euro Court threatens retail trade
The UK drinks retail market could be devastated if the European Court of Justice passes a ruling prohibiting additional taxes being levied on foreign goods purchased online. Advocate General Francis Jacob has stated that the extra duty does not conform to the single market principle. The ECJ is expected to pass a ruling on November 23.
If the Court rubber stamps Jacob’s proposal it seems likely to fuel a surge in online shopping for cheap wine and spirits. Ferry operators who are reliant on the ‘booze cruise’ business and the Treasury will both be hit hard.
Commenting on the development, WSTA chief executive Jeremy Beadles urged caution form the trade. "Think about the threats, think about the opportunities but don’t do anything until we know what the decision says. There’s going to be a lot more detail coming out and there will likely be provisos on how people are actually allowed to do this.
© db 15th November 2006