&w=3840&q=100)
Will UK bring back tax-free shopping? What retailers demand from govt
Making purchases exempt from VAT could result in £3.65 billion ($4.9 billion) of additional spending by visitors from the European Union, the Association of International Retail said in a submission to ministers published Tuesday. That's on top of about £1.5 billion of spending by non-EU visitors the lobby group said was diverted from the UK when it scrapped tax-free shopping in 2021.
The report sent to the Department for Culture, Media and Sport is the latest salvo in a long tussle between retailers and the government. Then Chancellor of the Exchequer Rishi Sunak used the UK's exit from the EU as a chance to end a system that let travelers reclaim the 20% VAT sales tax on their purchases.
Since then, Conservative and Labour governments — with the exception of the short-lived administration of former Prime Minister Liz Truss — agreed with Sunak's assessment that the policy cost the Treasury more than it gained. Subsequent analysis by the Office for Budget Responsibility backed that view.
Reeves faces a fiscal shortfall heading into this year's autumn budget, after expensive U-turns on welfare cuts and amid reduced prospects for growth. That makes any change to her stance on tax-free shopping less likely, even as she faces calls to help companies after she raised payroll taxes this year.
But British retailers argue they have lost out to countries like France and Spain that offer tax-free shopping to non-EU visitors, and have repeatedly put forward the argument that the Treasury is not taking into account the wider uplift in spending in considering the impact of the policy on the public coffers.
Hundreds of retailers including Mulberry Group Plc, Fortnum & Mason Plc and John Lewis signed an open letter to Reeves last year calling for the government to reinstate the policy.
According to the Association of International Retail, the UK would become the only country in Europe offering VAT rebates to 450 million EU consumers. It also cited figures showing visitor spending in the UK was 92% of 2019 levels last year, compared with 106% in Spain and 110% in France.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Hindustan Times
26 minutes ago
- Hindustan Times
Delhi cop's book traces history of policing in India since Vedic age
Dinesh Kumar Gupta, additional commissioner of police (traffic) of the Delhi Police, unveiled his new book 'Policing and Crime Trends in India' at the India Habitat Centre on Sunday. BJP MPs Harsh Malhotra, Manoj Tiwari and Kiran Choudhry, actor Vindu Dara Singh, among others, at the book launch on Sunday. (ANI) The book delves into the development of policing from ancient civilisations to the modern day, examining shifts in crime, public perception, and police capability. It underlines the impact of colonial rule and urges a citizen-centric, proactive policing model to tackle present-day challenges like cybercrime, terrorism, and gender-based violence. The book also delves into the evolution of the Indian Police Service (IPS), span from British era to the present day. 'I have explored how policing from Vedic times originated and what changes have occurred in policing and crime over time. I have shared my own experience and insight in regards to policing and what needs to be done from our side to improve it. My book is a culmination of my journey, inspired by my father, a passionate police officer who served in the UP Police. His writings and values have instilled in me a sense of duty, resilience and compassion,' said Gupta. Union minister of state Harsh Malhotra was the chief guest. Delhi commissioner of police Sanjay Arora, MPs Manoj Tiwari and Kiran Choudhary, professor GS Bajpai, vice-chancellor, National Law University, IPS officers Vivek Gogia, Devesh Chandra Srivastava, Ajay Choudhary, and Jaspal Singh, para-athlete Deepa Malik, and chief minister Rekha Gupta were also present.

Economic Times
26 minutes ago
- Economic Times
Stock futures rise as Trump, EU reach tariff deal
Stock-index futures climbed after the European Union struck a deal with President Donald Trump that will see the bloc face 15% tariffs on most exports, averting a potentially damaging trade war. ADVERTISEMENT S&P 500 contracts rose 0.4% and those for European stocks jumped 1%. The euro was slightly stronger against the dollar after the US-EU deal. Asian shares fluctuated at the open as Japanese equities declined 0.4%. Treasuries dipped slightly with yields on the 10-year gaining one basis point to 4.4%. Gold edged lower and oil was marginally higher. Investors are bracing for a busy week of data - including meetings of the Federal Reserve and the Bank of Japan - and earnings from megacap companies that could set the tone for the rest of the year in markets and the economy. Stocks have risen from their slump in April as investors speculate the US will strike trade deals with countries and that will help avoid significant damage to company earnings and the global economy. 'A US trade deal with the EU sets the markets up for a positive start to the week, although market participants also confront one of the busiest weeks on the economic calendar for the year,' wrote Kyle Rodda, a senior market analyst at in and European Commission President Ursula von der Leyen announced the EU deal on Sunday at his golf club in Turnberry, Scotland, although they didn't disclose the full details of the pact or release any written hard-fought deal will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy. ADVERTISEMENT Meanwhile, the US and China are expected to extend their tariff truce by another three months, the South China Morning Post reported. The report comes ahead of trade talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Stockholm on in Asia, Japanese Prime Minister Shigeru Ishiba signaled he intended to stay in office despite a growing number of calls within the ruling party for him to step down. Later in the week, the Bank of Japan is set to keep interest rates unchanged with traders on alert for any signs of future guidance by the central bank. ADVERTISEMENT This week will also bring a US jobs report, while Magnificent Seven members Apple Inc., Inc., Microsoft Corp. and Meta Platforms Inc. are all due to report numbers. Robust corporate earnings have bolstered investor confidence in US stocks, as companies head for their highest share of beats since the second quarter of in trade deals, positive economic data and corporate resilience have offset worries that stocks are overheating. More than 80% of S&P 500 companies have exceeded profit estimates, according to data compiled by Bloomberg Intelligence. ADVERTISEMENT However, the risk of a bubble in stock markets is rising as monetary policy loosens alongside an easing in financial regulation, according to Bank of America Corp.'s Michael geopolitical news, Thailand and Cambodia are set to hold talks Monday to discuss an end to their deadly border clashes after US President Donald Trump warned Washington wouldn't make a trade deal with either country while the conflict continued. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
&w=3840&q=100)

First Post
26 minutes ago
- First Post
FirstUp: Lok Sabha to begin 16-hour discussion on Operation Sindoor and other top news
The long-anticipated discussion on Operation Sindoor is set to begin in Parliament today. The Lok Sabha will take it up today, while the Rajya Sabha will hold its debate tomorrow (Tuesday). Prime Minister Narendra Modi is also expected to take part in the discussion. The Opposition is likely to question the government over repeated claims by the US that it helped broker a ceasefire between India and Pakistan read more Prime Minister Narendra Modi is also expected to speak during the discussion. PTI/File Photo It's a busy Monday. The Lok Sabha is set for an intense debate today on Operation Sindoor and the Pahalgam terror attack. US President Donald Trump will visit his golf resort in Turnberry, where he will also meet British Prime Minister Keir Starmer. The third round of trade talks between the US and China will take place in Stockholm, Sweden. The Supreme Court is scheduled to hear a petition on whether BS VI-compliant vehicles in the Delhi-National Capital Region should have a fixed life span of 15 years for petrol and 10 years for diesel variants. STORY CONTINUES BELOW THIS AD Google and Meta have been called in by the Enforcement Directorate today over the promotion of online betting and gambling apps labelled as 'illegal.' Let's take a look at the events: Operation Sindoor debate in Lok Sabha The much-awaited discussion on Operation Sindoor will begin today in Parliament. The Lok Sabha will take it up today, followed by the Rajya Sabha tomorrow (Tuesday). Both Houses have set aside 16 hours for the debate, expected to run over two days. Prime Minister Narendra Modi is also expected to speak during the discussion. The Lok Sabha is set for an intense debate today on Operation Sindoor. PTI/File Photo On the first day of the monsoon session, PM Modi set the stage for the government's stand on the Opposition's call for a debate on Operation Sindoor and the Pahalgam terror attack. He had called India's strike on terror camps inside Pakistan a '100% success.' The Opposition plans to raise questions about the US repeatedly claiming to have brokered a ceasefire between India and Pakistan. It also plans to bring up the alleged intelligence failure in Pahalgam, where 26 civilians were killed by armed terrorists on April 22. Trump to meet UK PM Starmer in Scotland As part of his Scotland visit, US President Donald Trump will meet British Prime Minister Keir Starmer at his Turnberry golf resort. He will later travel around 200 miles (320 km) to his large golf estate near Aberdeen in the west. During the visit, he is expected to open a new 18-hole course at the Aberdeen property. The course is named after his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before moving to the US. STORY CONTINUES BELOW THIS AD Trump is now suing WSJ, its parent company, and owner Rupert Murdoch for $10 billion. Reuters/File Photo This overseas trip comes as Trump deals with the biggest political crisis of his second term. White House officials, concerned by the ongoing focus on the Epstein controversy, are hoping the issue loses steam while Trump is abroad. Trump is expected to return to Britain for a state visit from September 17 to 19, hosted by King Charles. China-US trade talks The United States and China will begin the third round of key trade negotiations in Stockholm, Sweden. The talks are taking place from July 27 to July 30. According to a statement from China's commerce ministry, both sides will continue discussions based on the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' Notably, China is facing an August 12 deadline to reach a lasting agreement with the White House or face higher tariffs from the US. US Treasury Secretary Scott Bessent had earlier said that officials from both countries would also explore the possibility of extending the deadline for finalising the deal. Key SC hearing over end-of-life rules for BS VI vehicles in NCR The Supreme Court will today hear a plea on whether BS VI-compliant vehicles in the Delhi-National Capital Region should be treated the same as BS IV ones, with an end-of-life cap of 15 years for petrol and 10 years for diesel variants. A two-judge bench led by Chief Justice of India B R Gavai and Justice K Vinod Chandran agreed to take up the matter after a lawyer requested an urgent hearing. STORY CONTINUES BELOW THIS AD The Supreme Court is scheduled to hear the petition today. File Photo/Reuters In 2015, the National Green Tribunal had ruled that diesel vehicles older than 10 years and petrol ones older than 15 years must not be allowed to operate in the NCR to curb pollution. The Supreme Court upheld this decision in 2018. Recently, the Delhi Government made an attempt to implement the same rule for BS VI vehicles. However, the move led to opposition from the public, leading to its suspension. Meta, Google to appear before ED over betting sites Google and Meta are due to appear today before the Enforcement Directorate over allegations of promoting 'illegal' online betting and gambling apps. The two tech companies are accused of allowing and giving prominence to advertisements and websites linked to betting platforms. According to news agency PTI, representatives of both firms had earlier requested a delay in their July 21 summons, saying they needed more time to gather documents and prepare for questioning. Once they appear, their statements will be recorded under the Prevention of Money Laundering Act (PMLA). With inputs from agencies