The Forum of Private Business is refuting a claim that closing a controversial VAT loophole would hit small firms hardest.
The Forum of Private Business is refuting a claim that closing a controversial VAT loophole would hit small firms hardest.
The lobbying group believes that removing the Low Value Consignment Relief scheme, which benefits many large companies by allowing them to move off-shore in order to pay no VAT on goods valued at up to £18, is long overdue and could stimulate a resurgence of small high street traders.
The Forum, which in 2005 gave evidence to the All-Party Parliamentary Small Shops Group about the impact of LVCR on small businesses, has for many years campaigned against the issue.
Jane Bennett, the Forum’s head of campaigns says, ‘The government simply must act in the upcoming Budget to close this unfair, anti-competitive VAT avoidance loophole. The economic future of our villages, towns and cities is at stake and, given the hundreds of millions in tax revenue lost each year by HMRC, it is mystifying that it has taken until now for something to be done.”
