Author Nick Hornby has given his support to the Federation Of Private Business's campaign against a loophole in tax laws that allow major music sellers to avoid paying VAT by basing themselves in the Channel Islands.
As previously reported, under European Union law retailers that operate outside the EU can sell products valued at under 22 euros to consumers in member states without charging VAT. The Channel Islands are not part of the EU, but are close enough to the UK, geographically and commercially, to make them a viable base for British distribution or mail order businesses. This has enabled the likes of Tesco, Amazon, Asda and Woolworths to sell major music releases at knock down rates - giving them an unfair advantage against specialist music sellers, and especially independent music shops.
Hornby, whose best selling novel High Fidelity is, of course, set in a North London independent record shop, says that the tax loophole is allowing large companies to sell cheap tax-free imports on the internet, squeezing out independent music shops - something which is bad for music and music fans. Describing himself as an "avid music fan", he says the governments of the UK, Jersey and Guernsey should all act to close the loophole sooner rather than later.
As also previously reported, the All-Party Parliamentary Small Shops Group also recently called for action to be taken against the loophole.