For ages now, we’ve been able to get our DVDs, games and Blu-rays on-the-cheap from Jersey, thanks to a little tax loophole called LVCR. Of course the government has been clamouring like a fat kid after cup cakes for all that missed tax. Now it’s been given the go-ahead to crush LVCR, meaning discs are going to get pricier from next month.
The LVCR, or Low Value Consignment Relief, has been powering the likes of Play, Amazon, Tesco and others giving us cheap DVDs without tax. Unfortunately it’s also been killing the high street, which simply can’t compete.
Apparently LVCR has been costing the government some £150 million a year in “lost revenue”, but it has also meant we’ve been lining our shelves with DVDs and Blu-rays without burning through our entire pay cheques. Apparently there are talks of shifting businesses to Switzerland, where tax relief still remains, so you might find cheap online DVDs come bouncing back at some point. Then again, when was the last time you actually bought a DVD with the likes of LoveFilm and Netflix around? [The Guardian via TechRadar]
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