Tesco and Asda are determined to continue to offer their customers the cheapest CDs and DVDs despite plans by the Jersey government to shut down a tax loophole which allows them to distribute from the island.
Tesco, Asda and a number of high street retailers are currently taking advantage of ‘low value consignment relief’ - which allows goods worth less than £18 to be imported from Jersey without VAT. But they have now been given a year to stop the practice and have been dealt a further blow as regulators on Guernsey said that they would not grant planning permission for any more warehouses.
A spokesman for Asda said that it would have to wait and see what happened in the channel islands. He said that if it could not distribute from Jersey or Guernsey, it would have to find somewhere else.
Tesco said it would continue to monitor the situation in Jersey but that it was business as usual for the time being and that it would continue giving customers the best possible offer.