Imports fraud is hitting UK's growth

13 April 2012

ECONOMIC growth could be reduced by up to 0.2% for 2000 and 2001 to take account of fraudulent imports, mainly of mobile phones and computer parts, on which VAT has not been paid.

National Statistics said today it would raise earlier estimates of the value of European Union imports by £2.8bn for 2000 and £7.1bn for 2001.

The fraud involves buying mobile phones VAT-free on the Continent then supplying them to firms here at a VAT-inclusive price and pocketing the difference.

However, other revisions are expected to offset these downward adjustments, leaving current growth estimates little changed.

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