IRELAND. The Irish government has said that it will mirror the UK’s rules on duty free sales if the UK leaves the European Union (currently scheduled for 29 March) under a ‘no deal Brexit’
This followed debate in the Dáil (Irish Parliament) on Wednesday about the issue, and questions put to Minister of Finance Paschal Donohue about the future of duty free sales once the UK exits the EU.
This was prompted by a proposed Irish government amendment to the UK Withdrawal Bill, which would mean no return to duty free between Ireland and the UK in the event of a no-deal Brexit.
As reported, the Irish Duty Free Alliance (IDFA) has been pushing the Irish government to review plans to preserve the duty free shopping status quo if the UK leaves without a deal.
Speaking on Wednesday afternoon, Minister Donohue said: “We will be making a decision and triggering what we are going to do when we are clear on what the UK is actually going to do.
“The UK will have to legislate to deliver that objective [of a return to duty free sales to EU-bound travellers]. That is why I am introducing an enabling provision whereby, in the event of that happening, the Government can respond with a commencement order.”
During the debate, Deputy Michael McGrath asked: “Is it the government’s policy position that if the UK does not introduce duty free, Ireland will not do so either but, conversely, if it does, we will do likewise? Is the position of the government that we will be acting in concert with the UK government on the question of duty free?”
Minister Donohue responded that this interpretation of the amendment was correct.
As reported, we understand that the UK is likely to pass legislation that allows for a return to duty free sales in the event of a no deal Brexit. This should happen next week, but probably after the planned ‘meaningful vote’ in the UK Parliament on Prime Minister Theresa May’s latest withdrawal proposals.
