The effect of this exemption from tariffs is to provide a tax subsidy to products sold from the freeport if (and this is critical) they are exported. That means that this benefit goes to other countries, and not into the UK market.
We don’t charge export tariffs. So, what’s this tariff that exports don’t pay then?
So, for example, current UK freeports waive the employer’s national insurance charge in respect of people employed in freeports, meaning that the cost of employing people is reduced. Again though, let’s be clear that this does not reduce tax for the employee. All the benefit of this goes to the employer. It is they who get the subsidy.
Amazing really for on odd numbered days Spud will insist that employers’ NI is incident upon the workers’ wages.