In a press release issued to correct claims about misinformation on the forthcoming transaction tax, the Government has said that some local traders are incorrect also implying that they are committing consumer fraud.

Local traders are being forced to increase the prices of goods they import after 10^th April due to the new transaction tax.  This is purely as a result of the treaty agreement which has been reached by the Government.  The transaction tax will impose a 15% increase on the landed cost (cost of goods, transport and insurance), but for some goods which are manufactured outside the UK and the EU there will also be a 12% tariff imposed as part of the treaty agreement.

For this reason, some local traders have encouraged consumers to buy or place orders before 10^th April.

At the end of the day the consumer has a choice on whether to buy a product or not. In a free market traders can set their margins as they see fit and will do so taking the competitive environment into account. To criticise local traders of committing fraud is unfair and unreasonable. 

It is a fact that many goods sold in Gibraltar after 10^th April are likely to be more expensive and because of this, local businesses are likely to be less competitive as a direct result of the treaty.

ENDS