UK trade minister Nigel Huddleston has given a breath of hope to retailers calling for the tourist tax to be scrapped by asking affected businesses to provide more data and information on how VAT-free shopping for visitors to this country benefits the wider economy.
Retailers including Harods, Harvey Nicholls, Watches of Switzerland Group, David M Robinson and Berry’s Jewellers have called for the return of instant VAT rebates for overseas shoppers to be reinstated.
Since the Brexit agreement of January 2022, visitors to this country from regions like the Americas, Asia and the Middle East have not been able claim back the 20% tax at the airport as they can in competing cities like Paris and Rome.
Hospitality businesses have joined retailers in calling for the scrapping of the so-called tourist tax because it deters high spending tourists from coming to the UK.
In a sign that relentless lobbying for the return of VAT-free shopping is beginning to cut through, Mr Huddleston said this week that chancellor Jeremy Hunt would consider whether to keep the policy when he next examines taxes for the autumn statement.
He stressed, however, that it would be a balanced decision looking at the benefit of encouraging tourism weighed against the need to raise funds for public services.
“If we got rid of the tax, then there would be some loss of revenue which we need to pay for our essential services,” Huddleston said on LBC Radio on Monday. “So it’s all a matter of balance. The appeal is please give us the data and the information and then that will help inform our decision-making.”
Another kick in the teeth for UK residents attempting to buy Rolex or certain other luxury brands then. Never mind, Chinese brands are coming.