13 November 2006
THE BOATLESS BOOZE CRUISE
Court backs tax-free delivery
By Adrian Shaw
BOOZE cruisers could soon be able to ditch the ferry trip and get drink and cigarettes delivered to their doors tax free.
Until now, the only way to avoid paying UK duty was to bring the goods through customs yourself and prove it was for personal consumption.
But shoppers will be able to order cut price booze and tobacco online or over the phone from EU countries and have them home delivered without adding on British tax after a ruling widely expected by the European Court of Justice.
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For example, smokers would be able to buy 200 Marlboro Light cigarettes from Latvia for £7.20 instead of £50.44 here, saving £43.24.
The ruling would cost the Treasury billions in lost revenue and severely affect businesses and ferry operators running booze cruises.
The case was brought by a group of Dutch people charged tax by their government on wine bought in France. The court's advocate general Francis Jacob ruled for them.
The final decision, due on November 23, is expected to confirm it. The ruling is the first stage in setting a single rate of taxes across Europe. Britons pay much more than most for booze and cigs in high taxes. Chancellor Gordon Brown levies £15billion a year excise duty on them. The ruling would mean shoppers would pay only the tax of the country selling them - and not have to travel there themselves.
Jeremy Beadle, head of the Wine and Spirits Trade Association, said having to bring the booze back in person had been "the key disincentive until now".
Euro MP Charles Tannock, Tory spokesman on the duty free trade, said: "This is going to be a huge embarrassment to Gordon Brown and his tax raising.
"It will also increase pressure on member states to harmonise excise duty. If we are going to have a single market, this must be permitted."
Ferry firms running booze cruises even plan a delivery service. P&O said: "We have large ships going to Europe and a large warehouse and transport operation. We could find ourselves being able to offer a more door-to-door service for customers."
EU tax adviser Stephen Coleclough said: "This could be bad news for the exchequer but good news for consumers."
a.shaw@mirror.co.uk
HOW MUCH WE PAY
1 Litre Bell's whisky
UK £15.28
FRANCE £10.84
LATVIA £10.83
200 Marlboro Lights
UK £50.44
FRANCE £37.00
LATVIA £7.20
24 x Kronenbourg (44cl)
UK £22.58
FRANCE £9.99
LATVIA £13.60
75cl Jacob's Creek Chardonnay
UK £6.79
FRANCE £2.99
LATVIA £4.40
Who pays what in tax on wine? Pence per 70cl
125.8p UK
None AUSTRIA
24.5p BELGIUM
42.8p DENMARK
1.8p FRANCE
None GERMANY
141.8p IRELAND
None ITALY
17.6p POLAND
None SPAIN
22.4p LATVIA
Duty Free Booze .com : Duty Free Alcohol / Tax Free Beer , booze cruises , booze cruise
Wine and spirits ordered over the Internet.
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