UK businesses importing food products from the European Union could be forced to raise prices, following the introduction of a “Brexit tax.”
Last week, the Department for Environment, Food and Rural Affairs (Defra) issued a consultation document which stated there would be a new planned charge of £43 per consignment, The Observer reported.
In the document, Defra said the tax looks to “recover operating costs for government-run border control posts in England,” with the charge affecting imports such as the Dover posts which control 90% of food imports from the EU.
However, commerical posts will be able to determine their own costs.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
Industry sources have said smaller retailers, specialist food shops and delicatessens that import items such as Parma ham and French cheese will be hit particularly hard by the tax.
A UK government spokesperson told The Observer: “Growing the economy and supporting small businesses are priorities for this government. The estimated charge of £20 to £43 is an indicative range while we continue to determine the full scale of operating costs and finalise the risk categories under the Target Operating Model.
“We are currently consulting with the sector and businesses to ensure we take the fairest approach that works for them, while also facilitating the movement of goods into the country and protecting our biosecurity.”
This news comes as research by the London School of Economics found that consumers paid £5.8 billion in additional grocery costs during the two years to the end of 2021 as a result of Brexit.
Asda chairman Lord Stuart Rose has also warned that Brexit has been “catastrophic” for British businesses, having urged the government to consider a closer trading relationship with the EU.
