Spain says treaty would minimise price differentials between Gibraltar and the Campo

The Secretary of State for the European Union says that a treaty for Gibraltar would see the introduction of what he called indirect taxes on goods imported into Gibraltar as well as on any goods manufactured on the Rock.

Fernando Sampedro told the joint EU affairs committee that this would guarantee a level playing field on both sides of the border.

He said that Spain already rejected the UK and Gibraltar proposal for a transactional tax of ten per cent, against Spain’s twenty-one - and that the UK and Gibraltar had rejected Spain’s proposition for Gibraltar to apply special taxes to fuel, tobacco and alcohol.

Fernando Sampedro says the idea is to reduce pricing differences between Gibraltar and the Campo, and that negotiations currently revolve around Gibraltar applying indirect taxes on imported goods and those manufactured on the Rock.